Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market
Date: 2001-09-27
Institutions: Council of the European Union, European Parliament
Subjects: approximation of laws, electrical energy, energy production, physical environment, renewable energy, single market

27.10.2001

EN

Official Journal of the European Communities

L 283/33

DIRECTIVE 2001/77/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 27 September 2001

on the promotion of electricity produced from renewable energy sources in the internal electricity
market

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

on Climate Change, and of any policy package to meet
further commitments.

Having regard to the Treaty establishing the European
Community, and in particular Article 175(1) thereof,

(4)

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Having regard to the opinion of
Regions (3),

the Committee of

the

Acting in accordance with the procedure laid down in Article
251 of the Treaty (4),

Whereas:

(1)

(2)

The potential for the exploitation of renewable energy
sources is underused in the Community at present. The
Community recognises the need to promote renewable
energy sources as a priority measure given that their
exploitation contributes to environmental protection
and sustainable development. In addition this can also
create local employment, have a positive impact on
social cohesion, contribute to security of supply and
make it possible to meet Kyoto targets more quickly. It
is
is therefore necessary to ensure that this potential
better exploited within the framework of the internal
electricity market.

The promotion of electricity produced from renewable
energy sources is a high Community priority as outlined
in the White Paper on Renewable Energy Sources (here-
inafter referred to as ‘the White Paper’) for reasons of
security and diversification of energy supply, of environ-
mental protection and of social and economic cohesion.
That was endorsed by the Council in its resolution of 8
June 1998 on renewable sources of energy (5), and by
the European Parliament in its resolution on the White
Paper. (6)

(3)

The increased use of electricity produced from renew-
able energy sources constitutes an important part of the
package of measures needed to comply with the Kyoto
Protocol to the United Nations Framework Convention

(1) OJ C 311 E, 31.10.2000, p. 320 and OJ C 154 E, 29.5.2001, p.

89.

(2) OJ C 367, 20.12.2000, p. 5.
(3) OJ C 22, 24.1.2001, p. 27.
(4) Opinion of the European Parliament of 16 November 2000 (OJ C
223, 8.8.2001, p. 294), Council Common Position of 23 March
2001 (OJ C 142, 15.5.2001, p. 5) and Decision of the European
Parliament of 4 July 2001 (not yet published in the Official
Journal). Council Decision of 7 September 2001.

(5) OJ C 198, 24.6.1998, p. 1.
(6) OJ C 210, 6.7.1998, p. 215.

The Council in its conclusions of 11 May 1999 and the
European Parliament in its resolution of 17 June 1998
on electricity from renewable energy sources (7) have
invited the Commission to submit a concrete proposal
for a Community framework on access for electricity
produced from renewable energy sources to the internal
market. Furthermore,
in its
resolution of 30 March 2000 on electricity from renew-
able energy sources and the internal electricity market (8)
underlined that binding and ambitious renewable energy
targets at the national level are essential for obtaining
results and achieving the Community targets.

the European Parliament

To ensure increased market penetration of electricity
produced from renewable energy sources in the medium
term, all Member States should be required to set
national indicative targets for the consumption of elec-
tricity produced from renewable sources.

indicative targets should be consistent
These national
with any national commitment made as part of the
climate
the
Community under the Kyoto Protocol.

commitments

accepted

change

by

indicative targets, and to what extent

The Commission should assess to what extent Member
towards achieving their
States have made progress
national
the
national indicative targets are consistent with the global
indicative target of 12 % of gross domestic energy
consumption by 2010, considering that
the White
Paper's indicative target of 12 % for the Community as a
whole by 2010 provides useful guidance for increased
efforts at Community level as well as in Member States,
bearing in mind the need to reflect differing national
circumstances. If necessary for the achievement of the
targets, the Commission should submit proposals to the
European Parliament and the Council which may include
mandatory targets.

(5)

(6)

(7)

(8) Where they use waste as an energy source, Member
States must comply with current Community legislation
on waste management. The application of this Directive
is without prejudice to the definitions set out in Annex
2a and 2b to Council Directive 75/442/EEC of 15 July
1975 on waste (9). Support for renewable energy sources
should be consistent with other Community objectives,
in particular respect for the waste treatment hierarchy.

(7) OJ C 210, 6.7.1998, p. 143.
(8) OJ C 378, 29.12.2000, p. 89.
(9) OJ L 194, 25.7.1975, p. 39. Directive as last amended by Commis-

sion Decision 96/350/EC (OJ L 135, 6.6.1996, p. 32).

L 283/34

EN

Official Journal of the European Communities

27.10.2001

(9)

(10)

Therefore, the incineration of non-separated municipal
waste should not be promoted under a future support
system for renewable energy sources, if such promotion
were to undermine the hierarchy.

The definition of biomass used in this Directive does not
prejudge the use of a different definition in national
legislation, for purposes other than those set out in this
Directive.

This Directive does not require Member States to recog-
nise the purchase of a guarantee of origin from other
Member States or the corresponding purchase of elec-
tricity as a contribution to the fulfilment of a national
quota obligation. However, to facilitate trade in elec-
tricity produced from renewable energy sources and to
increase transparency for the consumer's choice between
electricity produced from non-renewable and electricity
produced from renewable energy sources, the guarantee
of origin of such electricity is necessary. Schemes for the
guarantee of origin do not by themselves imply a right
to benefit from national support mechanisms established
in different Member States. It is important that all forms
of electricity produced from renewable energy sources
are covered by such guarantees of origin.

(11)

It is important to distinguish guarantees of origin clearly
from exchangeable green certificates.

(12)

The need for public support in favour of renewable
energy sources is recognised in the Community guide-
lines for State aid for environmental protection (1),
which, amongst other options, take account of the need
to internalise external costs of electricity generation.
However,
the Treaty, and in particular
Articles 87 and 88 thereof, will continue to apply to
such public support.

the rules of

(13) A legislative framework for the market in renewable

energy sources needs to be established.

(14) Member States operate different mechanisms of support
for renewable energy sources at
level,
including green certificates, investment aid, tax exemp-
tions or reductions, tax refunds and direct price support
schemes. One important means to achieve the aim of
this Directive is to guarantee the proper functioning of
these mechanisms, until a Community framework is put
into operation, in order to maintain investor confidence.

the national

(15)

(16)

It is too early to decide on a Community-wide frame-
work regarding support schemes, in view of the limited
experience with national schemes and the current rela-
tively low share of price supported electricity produced
from renewable energy sources in the Community.

It is, however necessary to adapt, after a sufficient trans-
itional period,
to the developing
internal electricity market. It is therefore appropriate that
the Commission monitor the situation and present a

schemes

support

(1) OJ C 37, 3.2.2001, p. 3.

report on experience gained with the application of
national schemes. If necessary, the Commission should,
in the light of the conclusions of this report, make a
proposal for a Community framework with regard to
support schemes for electricity produced from renew-
able energy sources. That proposal should contribute to
the achievement of the national
indicative targets, be
compatible with the principles of the internal electricity
market and take into account the characteristics of the
different sources of renewable energy, together with the
It
different technologies and geographical differences.
should also promote the use of
renewable energy
sources in an effective way, and be simple and at the
same time as efficient as possible, particularly in terms
of cost, and include sufficient transitional periods of at
least seven years, maintain investors' confidence and
avoid stranded costs. This framework would enable elec-
tricity from renewable energy sources to compete with
electricity produced from non-renewable energy sources
in the
and limit
medium term, reduce the need for public support.

to the consumer, while,

the cost

(17)

Increased market penetration of electricity produced
from renewable energy sources will allow for economies
of scale, thereby reducing costs.

(18)

It is important to utilise the strength of the market
forces and the internal market and make electricity
produced from renewable energy sources competitive
and attractive to European citizens.

(19) When favouring the development of a market for renew-
able energy sources, it is necessary to take into account
the positive impact on regional and local development
opportunities, export prospects, social cohesion and
employment opportunities, especially as concerns small
and medium-sized undertakings as well as independent
power producers.

(20)

(21)

(22)

The specific structure of the renewable energy sources
sector should be taken into account, especially when
reviewing the administrative procedures for obtaining
permission to construct plants producing electricity
from renewable energy sources.

In certain circumstances it is not possible to ensure fully
transmission and distribution of electricity produced
from renewable energy sources without affecting the
reliability and safety of the grid system and guarantees in
this context may therefore include financial compensa-
tion.

The costs of connecting new producers of electricity
from renewable energy sources should be objective,
transparent and non-discriminatory and due account
should be taken of the benefit embedded generators
bring to the grid.

27.10.2001

EN

Official Journal of the European Communities

L 283/35

(23)

the proposed action
Since the general objectives of
cannot be sufficiently achieved by the Member States
and can therefore, by reason of the scale or effects of the
action, be better achieved at Community level,
the
Community may adopt measures,
in accordance with
the principle of subsidiarity as set out in Article 5 of the
Treaty. Their detailed implementation should, however,
be left to the Member States, thus allowing each Member
State to choose the regime which corresponds best to its
particular situation. In accordance with the principle of
proportionality, as set out in that Article, this Directive
does not go beyond what
is necessary in order to
achieve those objectives,

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Purpose

The purpose of this Directive is to promote an increase in the
contribution of renewable energy sources to electricity produc-
tion in the internal market for electricity and to create a basis
for a future Community framework thereof.

Article 2

Definitions

For the purposes of this Directive, the following definitions
shall apply:

(a) ‘renewable energy sources’ shall mean renewable non-fossil
energy sources (wind, solar, geothermal, wave, tidal, hydro-
power, biomass,
landfill gas, sewage treatment plant gas
and biogases);

(b) ‘biomass’ shall mean the biodegradable fraction of products,
waste and residues from agriculture (including vegetal and
animal substances), forestry and related industries, as well
as the biodegradable fraction of industrial and municipal
waste;

(c) ‘electricity produced from renewable energy sources’ shall mean
electricity produced by plants using only renewable energy
sources, as well as the proportion of electricity produced
from renewable energy sources in hybrid plants also using
conventional energy sources and including renewable elec-
tricity used for filling storage systems, and excluding elec-
tricity produced as a result of storage systems;

(d) ‘consumption of electricity’ shall mean national electricity
production, including autoproduction, plus imports, minus
exports (gross national electricity consumption).

In addition, the definitions in Directive 96/92/EC of the Euro-
pean Parliament and of the Council of 19 December 1996
concerning common rules for the internal market of elec-
tricity (1) shall apply.

(1) OJ L 27, 30.1.1997, p. 20.

Article 3

National indicative targets

1. Member States shall take appropriate steps to encourage
greater consumption of electricity produced from renewable
energy sources in conformity with the national
indicative
targets referred to in paragraph 2. These steps must be in
proportion to the objective to be attained.

2.
Not later than 27 October 2002 and every five years
thereafter, Member States shall adopt and publish a report
setting national
indicative targets for future consumption of
electricity produced from renewable energy sources in terms of
a percentage of electricity consumption for the next 10 years.
The report shall also outline the measures taken or planned, at
national level, to achieve these national indicative targets. To
set these targets until the year 2010, the Member States shall:

— take account of the reference values in the Annex,

— ensure that the targets are compatible with any national
commitments accepted in the context of the climate change
commitments accepted by the Community pursuant to the
Kyoto Protocol to the United Nations Framework Conven-
tion on Climate Change.

3. Member States shall publish, for the first time not later
than 27 October 2003 and thereafter every two years, a report
which includes an analysis of success in meeting the national
indicative targets taking account,
in particular, of climatic
factors likely to affect the achievement of those targets and
which indicates to what extent the measures taken are consis-
tent with the national climate change commitment.

4.
On the basis of the Member States' reports referred to in
paragraphs 2 and 3, the Commission shall assess to what
extent:

— Member States have made progress towards achieving their

national

indicative targets,

— the national indicative targets are consistent with the global
indicative target of 12 % of gross national energy consump-
tion by 2010 and in particular with the 22,1 % indicative
share of electricity produced from renewable energy
sources in total Community electricity consumption by
2010.

The Commission shall publish its conclusions in a report, for
the first time not later than 27 October 2004 and thereafter
every two years. This report shall be accompanied, as appro-
priate, by proposals to the European Parliament and to the
Council.

If the report referred to in the second subparagraph concludes
that the national indicative targets are likely to be inconsistent,
for reasons that are unjustified and/or do not relate to new
scientific evidence, with the global
these
proposals shall address national
including possible
mandatory targets,

in the appropriate form.

indicative target,

targets,

L 283/36

EN

Official Journal of the European Communities

27.10.2001

Article 4

Support schemes

1. Without prejudice to Articles 87 and 88 of the Treaty,
the Commission shall evaluate the application of mechanisms
used in Member States according to which a producer of
electricity, on the basis of regulations issued by the public
authorities, receives direct or indirect support, and which could
have the effect of restricting trade, on the basis that these
contribute to the objectives set out in Articles 6 and 174 of the
Treaty.

2.
The Commission shall, not later than 27 October 2005,
present a well-documented report on experience gained with
the application and coexistence of the different mechanisms
referred to in paragraph 1. The report shall assess the success,
including cost-effectiveness, of the support systems referred to
in paragraph 1 in promoting the consumption of electricity
produced from renewable energy sources in conformity with
the national indicative targets referred to in Article 3(2). This
report shall, if necessary, be accompanied by a proposal for a
Community framework with regard to support schemes for
electricity produced from renewable energy sources.

Any proposal for a framework should:

(a) contribute to the achievement of the national

indicative

targets;

(b) be compatible with the principles of the internal electricity

market;

(c) take into account the characteristics of different sources of
renewable energy, together with the different technologies,
and geographical differences;

(d) promote the use of renewable energy sources in an effec-
tive way, and be simple and, at the same time, as efficient
as possible, particularly in terms of cost;

(e) include sufficient transitional periods for national support
systems of at least seven years and maintain investor confi-
dence.

Article 5

Guarantee of origin of electricity produced from renew-
able energy sources

1. Member States shall, not later than 27 October 2003,
ensure that the origin of electricity produced from renewable
energy sources can be guaranteed as such within the meaning
of this Directive according to objective, transparent and non-
discriminatory criteria laid down by each Member State. They
shall ensure that a guarantee of origin is issued to this effect in
response to a request.

— serve to enable producers of electricity from renewable
energy sources to demonstrate that the electricity they sell
is produced from renewable energy sources within the
meaning of this Directive.

4.
Such guarantees of origin, issued according to paragraph
2, should be mutually recognised by the Member States, exclu-
sively as proof of the elements referred to in paragraph 3. Any
refusal to recognise a guarantee of origin as such proof,
in
particular for reasons relating to the prevention of fraud, must
be based on objective,
transparent and non-discriminatory
criteria. In the event of refusal to recognise a guarantee of
origin, the Commission may compel the refusing party to
recognise it, particularly with regard to objective, transparent
and non-discriminatory criteria on which such recognition is
based.

5. Member States or the competent bodies shall put in place
appropriate mechanisms to ensure that guarantees of origin are
both accurate and reliable and they shall outline in the report
referred to in Article 3(3) the measures taken to ensure the
reliability of the guarantee system.

6.
After having consulted the Member States, the Commis-
sion shall, in the report referred to in Article 8, consider the
form and methods that Member States could follow in order to
guarantee the origin of electricity produced from renewable
energy sources. If necessary, the Commission shall propose to
the European Parliament and the Council
the adoption of
common rules in this respect.

Article 6

Administrative procedures

1. Member States or the competent bodies appointed by the
Member States shall evaluate the existing legislative and regula-
tory framework with regard to authorisation procedures or the
other procedures laid down in Article 4 of Directive 96/92/EC,
which are applicable to production plants
for electricity
produced from renewable energy sources, with a view to:

— reducing the regulatory and non-regulatory barriers to the
increase in electricity production from renewable energy
sources,

— streamlining and expediting procedures at the appropriate

administrative level, and

— ensuring that the rules are objective, transparent and non-
discriminatory, and take fully into account the particulari-
ties of the various renewable energy source technologies.

2. Member States may designate one or more competent
bodies, independent of generation and distribution activities, to
supervise the issue of such guarantees of origin.

A guarantee of origin shall:

3.
— specify the energy source from which the electricity was
produced, specifying the dates and places of production,
and in the case of hydroelectric installations, indicate the
capacity;

2. Member States shall publish, not later than 27 October
2003, a report on the evaluation referred to in paragraph 1,
indicating, where appropriate, the actions taken. The purpose
of this report is to provide, where this is appropriate in the
context of national
the stage
reached specifically in:

legislation, an indication of

— coordination between the different administrative bodies as
regards deadlines, reception and treatment of applications
for authorisations,

27.10.2001

EN

Official Journal of the European Communities

L 283/37

— drawing up possible guidelines for the activities referred to
in paragraph 1, and the feasibility of a fast-track planning
procedure for producers of electricity from renewable
energy sources, and

— the designation of authorities to act as mediators in
disputes between authorities responsible for issuing author-
isations and applicants for authorisations.

3.
The Commission shall, in the report referred to in Article
8 and on the basis of the Member States' reports referred to in
paragraph 2 of this Article, assess best practices with a view to
achieving the objectives referred to in paragraph 1.

Article 7

Grid system issues

1. Without prejudice to the maintenance of the reliability
and safety of the grid, Member States shall take the necessary
measures to ensure that transmission system operators and
distribution system operators in their territory guarantee the
transmission and distribution of electricity produced from
renewable energy sources. They may also provide for priority
access to the grid system of electricity produced from renew-
able energy sources. When dispatching generating installations,
transmission system operators shall give priority to generating
installations using renewable energy sources insofar as the
operation of the national electricity system permits.

2. Member States shall put into place a legal framework or
require transmission system operators and distribution system
operators to set up and publish their standard rules relating to
the bearing of costs of technical adaptations, such as grid
connections and grid reinforcements, which are necessary in
order to integrate new producers feeding electricity produced
from renewable energy sources into the interconnected grid.

These rules shall be based on objective, transparent and non-
discriminatory criteria taking particular account of all the costs
and benefits associated with the connection of these producers
to the grid. The rules may provide for different
types of
connection.

3. Where appropriate, Member States may require transmis-
sion system operators and distribution system operators to
bear, in full or in part, the costs referred to in paragraph 2.

4.
Transmission system operators and distribution system
operators shall be required to provide any new producer
wishing to be connected with a comprehensive and detailed
estimate of the costs associated with the connection. Member
States may allow producers of electricity from renewable
energy sources wishing to be connected to the grid to issue a
call for tender for the connection work.

5. Member States shall put into place a legal framework or
require transmission system operators and distribution system
operators to set up and publish their standard rules relating to
the sharing of costs of system installations, such as grid
connections and reinforcements, between all producers bene-
fiting from them.

The sharing shall be enforced by a mechanism based on objec-
tive, transparent and non-discriminatory criteria taking into
account the benefits which initially and subsequently connected
producers as well as
transmission system operators and
distribution system operators derive from the connections.

6. Member States shall ensure that the charging of transmis-
sion and distribution fees does not discriminate against elec-
tricity from renewable energy sources, including in particular
electricity from renewable energy sources produced in periph-
eral regions, such as island regions and regions of low popula-
tion density.

Where appropriate, Member States shall put in place a legal
require transmission system operators and
framework or
distribution system operators to ensure that fees charged for
the transmission and distribution of electricity from plants
using renewable energy sources reflect realisable cost benefits
resulting from the plant's connection to the network. Such cost
benefits could arise from the direct use of the low-voltage grid.

7. Member States shall, in the report referred to in Article
6(2), also consider the measures to be taken to facilitate access
to the grid system of electricity produced from renewable
energy sources. That report shall examine, inter alia, the feasi-
bility of introducing two-way metering.

Article 8

Summary report

On the basis of the reports by Member States pursuant to
Article 3(3) and Article 6(2), the Commission shall present to
the European Parliament and the Council, no later than 31
December 2005 and thereafter every five years, a summary
report on the implementation of this Directive.

This report shall:

— consider the progress made in reflecting the external costs
of electricity produced from non-renewable energy sources
and the impact of public support granted to electricity
production,

— take into account the possibility for Member States to meet
the national indicative targets established in Article 3(2), the
global indicative target referred to in Article 3(4) and the
energy
existence of discrimination between different
sources.

If appropriate, the Commission shall submit with the report
further proposals to the European Parliament and the Council.

L 283/38

EN

Official Journal of the European Communities

27.10.2001

Article 9

Transposition

Member States shall bring into force the laws, regulations and administrative provisions necessary to
comply with this Directive not later than 27 October 2003. They shall forthwith inform the Commission
thereof.

When Member States adopt these measures, they shall contain a reference to this Directive or shall be
accompanied by such a reference on the occasion of their official publication. The methods of making such
reference shall be laid down by the Member States.

Article 10

Entry into force

This Directive shall enter into force on the day of its publication in the Official Journal of the European
Communities.

Article 11

Addressees

This Directive is addressed to the Member States.

Done at Brussels, 27 September 2001.

For the European Parliament

The President

N. FONTAINE

For the Council

The President

C. PICQUÉ

27.10.2001

EN

Official Journal of the European Communities

L 283/39

ANNEX

Reference values for Member States' national indicative targets for the contribution of electricity produced from
renewable energy sources to gross electricity consumption by 2010 (*)

This Annex gives reference values for the fixing of national indicative targets for electricity produced from renewable
energy sources (‘RES-E’), as referred to in Article 3(2):

RES-E TWh 1997 (**)

RES-E % 1997 (***)

RES-E % 2010 (***)

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

United Kingdom

0,86

3,21

24,91

3,94

37,15

66,00

0,84

46,46

0,14

3,45

39,05

14,30

19,03

72,03

7,04

1,1

8,7

4,5

8,6

19,9

15,0

3,6

16,0

2,1

3,5

70,0

38,5

24,7

49,1

1,7

6,0

29,0

12,5

20,1

29,4

21,0

13,2

25,0 (1)

5,7 (2)

9,0

78,1 (3)

39,0 (4)

31,5 (5)

60,0 (6)

10,0

Community

338,41

13,9 %

22 % (****)

(*)

In taking into account the reference values set out in this Annex, Member States make the necessary assumption that the State aid
guidelines for environmental protection allow for the existence of national support schemes for the promotion of electricity produced
from renewable energy sources.

(**) Data refer to the national production of RES-E in 1997.
(***) The percentage contributions of RES-E in 1997 and 2010 are based on the national production of RES-E divided by the gross national
electricity consumption. In the case of internal trade of RES-E (with recognised certification or origin registered) the calculation of
these percentages will

influence 2010 figures by Member State but not the Community total.

(****) Rounded figure resulting from the reference values above.
(1) Italy states that 22 % would be a realistic figure, on the assumption that in 2010 gross national electricity consumption will be 340 TWh.
When taking into account the reference values set out in this Annex, Italy has assumed that gross national electricity production from
renewable energy sources will attain up to 76 TWh in 2010. This figure includes the contribution of the non-biodegradable fraction of
municipal and industrial waste used in compliance with Community legislation on waste management.
In this respect, the capability to reach the indicative target as referred to in this Annex, is contingent, inter alia, upon the effective level of
the national demand for electric energy in 2010.

(2) Taking into account the indicative reference values set out in this Annex, Luxembourg takes the view that the objective set for 2010 can be

achieved only if:
— total electricity consumption in 2010 does not exceed that of 1997,
— wind-generated electricity can be multiplied by a factor of 15,

L 283/40

EN

Official Journal of the European Communities

27.10.2001

— biogas-generated electricity can be multiplied by a factor of 208,
— electricity produced from the only municipal waste incinerator in Luxembourg, which in 1997 accounted for half the electricity

produced from renewable energy sources, can be taken into account in its entirety,

— photovoltaically generated electricity can be raised to 80 GWh, and
in so far as the above points can be achieved from the technical standpoint in the time allowed.
In the absence of natural resources, an additional

increase in electricity generated by hydroelectric power stations is ruled out.

(3) Austria states that 78,1 % would be a realistic figure, on the assumption that in 2010 gross national electricity consumption will be
56,1 TWh. Due to the fact that the production of electricity from renewable sources is highly dependent on hydropower and therefore
on the annual rainfall, the figures for 1997 and 2010 should be calculated on a long-range model based on hydrologic and climatic
conditions.

(4) Portugal, when taking into account the reference values, set out in this Annex, states that to maintain the 1997 share of electricity

produced from renewable sources as an indicative target for 2010 it was assumed that:
— it will be possible to continue the national electricity plan building new hydro capacity higher than 10 MW,
— other renewable capacity, only possible with financial state aid, will increase at an annual rate eight times higher than has occurred

recently.

These assumptions imply that new capacity for producing electricity from renewable sources, excluding large hydro, will increase at a rate
twice as high as the rate of increase of gross national electricity consumption.

(5) In the Finnish action plan for renewable energy sources, objectives are set for the volume of renewable energy sources used in 2010.
These objectives have been set on the basis of extensive background studies. The action plan was approved within the Government in
October 1999.
According to the Finnish action plan, the share of electricity produced from renewable energy sources by 2010 would be 31 %. This
indicative target is very ambitious and its realisation would require extensive promotion measures in Finland.

(6) When taking into account the reference values set out in this Annex, Sweden notes that the possibility of reaching the target is highly
dependent upon climatic factors heavily affecting the level of hydropower production, in particular variations in pluviometry, timing of
rainfall during the year and inflow. The electricity produced from hydropower can vary substantially. During extremely dry years
production may amount to 51 TWh, whereas in wet years it could amount to 78 TWh. The figure for 1997 should thus be calculated
with a long-range model based on scientific facts on hydrology and climatic change.
It is a generally applied method in countries with important shares of hydropower production to use water inflow statistics covering a
time span of 30 to 60 years. Thus, according to the Swedish methodology and based on conditions during the period 1950-1999,
correcting for differences in total hydropower production capacity and inflow over the years, average hydropower production amounts to
64 TWh which corresponds to a figure for 1997 of 46 %, and in this context Sweden considers 52 % to be a more realistic figure for
2010.
Furthermore, the ability of Sweden to achieve the target is limited by the fact that the remaining unexploited rivers are protected by law.
Moreover, the ability of Sweden to reach the target is heavily contingent upon:
— the expansion of combined heat and power (CHP) depending on population density, demand for heat and technology development,

in particular for black liquor gasification, and

— authorisation for wind power plants in accordance with national laws, public acceptance, technology development and expansion of

grids.