CELEX: 51987PC0432
Language: en
Date: 1987-09-28
Title: Proposal for a COUNCIL RECOMMENDATION TO THE MEMBER STATES on developing the exploitation of renewable energy sources in the Community (presented by the Commission)

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COM (87) 432
Vol. 1987/0228
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(87 ) 432 final
                                                  Brusse ^ 29 september 19873
                                   Proposai for a
                   COUNCIL RECOMMENDATION TO THE MEMBER STATES
           on developing the exploitation of renewable energy sources
                                  in the Community
                          ( presented by the Commission )
 C0MC87 ) 432 final
 ---pagebreak---       '                                   Λ.
            PROPOSAL FOR A COUNCIL RECOMMENDATION TO THE MEMBER STATES
                                           ON
              DEVELOPING THE EXPLOITATION OF RENEWABLE ENERGY SOURCES
                                  IN THE COMMUNITY
                                       CONTENTS
                                                                          Page
        SUMMARY                                                             2
I.      INTRODUCTION AND AIM OF THE PROPOSAL                                3
II .    PRESENT SITUATION , BARRIERS , ECONOMIC ASPECTS AND OTHER FACTORS   4
        IN THE DEVELOPMENT OF RENEWABLE ENERGY SOURCES
III .   SECTORAL ANALYSIS                                                   5
        - Solar energy : thermal                                            7
        - Solar energy : photovoltaic                                       8
        - Biomass and energy from waste                                    10
        - Geothermal energy                                                11
        - Wind energy                                                      12
        - Hydroelectricity                                                 14
IV .    CONCLUSIONS                                                        15
        PROPOSAL FOR A COUNCIL RECOMMENDATION TO THE MEMBER STATES ON      17
        DEVELOPING THE EXPLOITATION OF RENEWABLE ENERGY SOURCES IN THE
        COMMUNITY
                                         *  * *
 ---pagebreak---                                          - 2 -
                                        SUMMARY
            DEVELOPING THE EXPLOITATION OF RENEWABLE ENERGY SOURCES
                                  IN THE COHMUNITY
                                          AND
                      PROPOSAL FOR A COUNCIL RECOMMENDATION
1. On 26 November 1986 the Energy Council adopted a resolution recognizing
   the need for a Community level approach to encourage the exploitation of
   renewable energy sources .        The Commission was also invited to prepare
   measures to stimulate the use of the renewable energies , and to report
   regularly on the development of their exploitation .
2. The attached communication is the first follow-up to this resolution and
   gives an overview of the state of the art for those         renewables which are
   at , or approaching , economic viability ( solar ,           biomass and waste ,
   geothermal , wind and small hydroelectric ).            It   also considers the
   obstacles hindering their further exploitation and         suggests measures to
   help overcome these obstacles .
3. The main obstacles , apart from further technological development needed
   for some applications , are the lack of knowledge among decision-makers of
                                /
   what has been demonstrated and what is now viable , the absence of tariffs
   likely to attract renewable-energy-generated electricity sales to the
   public grid ,     and the need to establish common principles for the
   certification of equipment so that there is no hindrance to the internal
   market in renewable energy equipment .            In addition , administrative
   procedures need to be streamlined .
4. Although renewable energy sources could well contribute up to 5% or 6% of
   the Community 's energy needs by the year 2000, this will not be achieved
   unless the obstacles are removed and judicious encouragement is given to
   them .    It is imperative that this support should be given .         Renewables
   have the merit of being indigenous sources of supply and , in the longer
   term, have the potential of supplying a substantial proportion of not only
   the needs of the Community, but also those of developing countries .
5. The    communication    also    puts    forward a   proposal     for  a   Council
   recommendation .
 ---pagebreak---                                          - 3 -
I.   INTRODUCTION AND AIM OF THE PROPOSAL
     1.  When the Council adopted in November 1986 its resolution on a
                                                                             1
         Community orientation to develop new and renewable energy sources , it
         emphasized the need to expand the exploitation of these sources in the
         Community .
     2.  In particular , the Council defined the aims to be pursued under a
         Community orientation , which included :
         - to ensure optimum exploitation of renewable energy sources in the
            Community ,    considering their economic viability and their
            availability in the Member States ;
         - to obtain the best return on efforts to develop the exploitation of
            these sources by avoiding duplication , and by ensuring that results
            of experience are widely disseminated in the Community ;
         - to ensure consultation at Community level so that national measures
            for development of these energy sources can be properly coordinated ;
         - to prepare Community measures to promote the exploitation of these
            sources ;
         - to facilitate cooperation among industries in the different
            renewable energy sectors and the expansion of markets within the
            Community .
     3.  The proposal in this paper is for a first recommendation for achieving
         the aims set out in the resolution .     The   recommendation covers all
         renewable energy sources .    The Commission is also continuing the work
         described in the Community orientation to develop new and renewable
                         2
         energy sources and intends to present to the Council at a future date
         sectoral proposals concerning the various energy sources .
, 0J C 316 , 1.12.1986 .
  Doc . C0M(86)12 of 23.1.1986 . For the work described in the orientation , the
  Commission has proposed entering a new heading in the 1988 budget entitled
  "Measures to develop renewable energy sources ". As 1988 will be the start-up
  year , the appropriations requested will mainly be for support measures such
  as the exchange and dissemination of information , the preparation of studies
  and the engaging of consultants .
 ---pagebreak---                                           - 4 -
     4.  The renewable energy sources covered by this proposal are those which
         in the present state of the art offer the best prospects for
         increased penetration of the energy market :
         - photovoltaics and solar thermal energy;
         - biomass and energy from waste ;
         - geothermal energy ;
         - wind energy ;
         - hydroelectricity , especially small installations .
II . PRESENT SITUATION ,   BARRIERS , ECONOMIC ASPECTS AND OTHER FACTORS IN THE
     DEVELOPMENT OF RENEWABLE ENERGY SOURCES
     5.  In order to assess the present state of development of the renewable
         energies in the Community and following          the Energy Council 's
         commitment of 26 November 1986 , the Commission convened a meeting in
         March 1987 of national scientific and technical advisers on renewable
         energy .   This meeting gave the Commission information on priorities
         in the Member States , the state of the art and prospects , the
         potential , the obstacles and current programmes . This information is
         summarised in a detailed report .
     6.  The salient features of the present situation and      prospects in the
         Member States may be summed up as follows .
         6.1  All Member States are now supporting on varying scales the
              development of renewable energy sources ( except Luxembourg ,
              whose efforts focus on energy conservation , given its particular
              situation ).       The obstacles to development vary : besides
              technical or economic difficulties , there are often also legal
              or institutional problems .       The priorities vary from one
              Member State to another ,      depending mainly on geographical
              conditions , especially for solar , wind, geothermal and hydro ,
              while interest in the development of biomass and energy from
              waste is more general .
         6.2  By the year 2000 the contribution of renewables in meeting
              national energy requirements will still be fairly small ( ranging
               from 2% to 6% depending on the country ),           although the
 ---pagebreak---                                                   - 5 -
                 longer-term prospects are more open ,       depending on cost trends
                 for    conventional   sources   and   the   efforts    made   to   reach
                 technological maturity .     In its resolution of 16 September 1986
                 on new Community energy policy objectives for 1995 ,                 and
                 convergence of the policies of Member States , the Council
                 noted : " The ouput from new and renewable energy sources in
                 place of conventional fuels should be substantially increased ,
                 thereby enabling them to make a significant contribution to the
                 total energy balance ".
                 In its communication to the Council on the new objectives for
                     4
                 1995 the Commission put forward the broad target of tripling
                 the contribution of renewable energy , and in its communication
                 to the Council on a Community orientation to develop new and
                 renewable energy sources^ the Commission quantified this target
                 by   estimating    that   renewable    sources   could    approach   the
                 equivalent of 5% of the Community 's energy demand by the year
                 2000 . 6
           6.3   The economic conditions and the competitiveness of renewable
                 energy development have declined in recent years given the
                 fairly abundant supply of conventional energy resources and
                 their price trends .      This is especially true for the thermal
                 applications of renewables , but electricity generation from
                 these sources remains competitive in many cases , especially in
                 isolated locations .
III .   SECTORAL ANALYSIS
        7.  In this section we present the principal characteristics of the
            renewable energy sources considered , showing for each of them its
            potential ,      exploitation technologies and market penetration ,
            economic aspects and problems of development .
*0J C 241 , 25.9.1986.
çDoc . C0M(85)245 , 22.5.1985 .
^Doc  . C0MC86) 12 final, 23.1.1986.
 Including large hydroelectric installations        and excluding firewood .
 ---pagebreak---                                      - 6 -
8. Some problems are common to the development of all renewable
   sources .
   8.1  The absence of any specific legislation for these sources and
        of appropriate administrative procedures is often a major
        obstacle to their use .      In most   cases the consequences are
        hindrances and long delays in obtaining authorization to
        exploit them , which can discourage the realisation of projects .
        Clear and expeditious procedures ,          with due regard for
        environmental aspects , by means of straightforward and fast
        decision-making processes can only be achieved through
        provisions that are specific to renewable sources , still
        lacking in several Member States .
   8.2  If renewable sources are to be harnessed , they must be well -
        known and understood ; but inventories of these resources in the
        Community are not satisfactory .      Studies on the potential and
        practical     possibilities  for   exploitation   must  be  further
        developed so that the possibilities offered by these sources
        may be better grasped, especially at regional and local level .
   8.3  A common feature of renewable sources is the generally high
        investment cost , which is often due to the fact that the
        economies of scale deriving from a wider market cannot yet be
        counted on .     The financial commitment , especially for projects
        promoted by regional bodies , local authorities or small or
        medium-sized enterprises , may turn out to be too heavy ; and
        there may well sometimes be a degree of technological risk .
        Appropriate flexible financing structures are needed to
         facilitate decisions to invest in renewable energy sources .
         Even the initial phase of feasibility studies or the technical
        preparation of projects is often too burdensome ; a financial
         support scheme for this phase would help projects to be
         launched .
   8.4  A common obstacle is to be found in the difficulties concerning
        the free movement of exploitation equipment in the Community .
        A major     effort  is needed to introduce common certification
        principles with an eye to a more rational and wider market .
 ---pagebreak---                                         - 7 -
   8.5  The economics of projects to generate electricity from
        renewables also depends on the contractual relations with the
        public producers / distributors whose grid takes part or all of
        the electricity generated .      Relations must be on a stable and
        sound basis and as far as possible ensure acceptable economic
        prospects .
   8.6  Finally, the share of renewables in energy balances is not
        properly appreciated for lack of the appropriate statistical
        methods .     The data available are fragmentary and incomplete
        because they are geographically scattered , the subject matter
        is complex and the agencies involved are heterogeneous .            The
        methodological problems of including renewables in energy
        accounting must be investigated further in order to arrive at
        satisfactory statistical methods .
9. Solar energy : thermal
   9.1 Several estimates have been made of the possible contribution
        of solar energy to meeting the Community 's energy requirements ;
        taking into account technological developments expected in the
        short term , it can be put at between 0.5% and 1% of Community
        consumption by the year 2000 ( 6-12 million toe ).
   9.2  The solar energy market       concerns   two sectors     :    low- and
        medium-temperature      applications     Cup     to    100°C ),     and
        high-temperature applications .       Market penetration has been
        greater in the first sector with the exploitation of passive
        solar energy , water heating , and space heating by hot-air and
        hot water installations . The high-temperature applications are
        for industrial processes , steam production and electricity
        generation .     This technology involves the use of concentrating
        collectors with heat vectors operating at temperatures above
        250°C .   These plants have not yet penetrated the market because
        of their complexity ,       high   cost   and   doubts    about   their
        reliabi lity .
   9.3  Many low-temperature applications are already profitable .          The
        technologies used for swimming pools have reached maturity and
        the market is constantly expanding .       Existing structures using
 ---pagebreak---                                          - 8 -
           the principles of passive solar energy demonstrate that there
           is already a market for it in both old and new buildings .       It
           is on the basis of this potential market that demand could be
           developed with the right policy .      On the other hand, space
           heating applications using active solar energy are meeting with
           varying degrees of success .        Hot-air systems can now be
           proposed at competitive prices , but liquid-type         collectors
           have until now not generally achieved profitability .
           For the production of domestic hot water , the technology used
           is already profitable in southern Europe and recent progress
           both in design and in reducing manufacturing costs will
           increase the chances of using this technology in certain parts
           of northern Europe .   Markets for similar systems producing hot
           water for industry have not been developed .
           There are more possible applications of solar energy in
           agriculture and successful demonstration projects have shown
           considerable potential for dryers ,          frost protection in
           glasshouses and natural ventilation systems .
     9.4 . Besides the problems common to the development of all
           renewables , the problems specific to thermal solar energy are
           essentially that neither architects nor potential users
           generally have any idea of the possibilities offered by solar
           equipment ;    the installers are not always properly trained;
           and the equipment is not always built to standard dimensions to
           facilitate installation .
           The public sector itself does not always plan to use solar
           energy in its own buildings , and property developers - or those
           providing finance - do not examine the possibilities for using
           solar energy .
10 . Solar energy : photovoltaic
     10.1 The contribution of photovoltaic          conversion ( PV )  to  the
           Community 's energy balance by the year 2000 will be marginal ,
           but other considerations militate in favour of exploiting this
           technology, for example improvements in infrastructures and
           living conditions in less-favoured regions will slow down
           depopulation trends and favour environmental conservation .      It
           is a clean technology,      producing energy directly from an
 ---pagebreak---                                               - 9 -
                    inexhaustible source by means of simple and reliable equipment ,
                    but still of high cost .           In the short term, recent studies
                    suggest    a    market   of    40 MWp'       can     be    expected     in      the
                    electrification of remote areas in the Community .
               10.2 With a present module cost of about 8 ECU /Wp ,                      the only
                    economically justifiable applications are small power plants up
                    to 1-1.5 kWp ,        such as electricity supply to                         remote
                    settlements or industrial and agricultural uses located more
                    than     2 km      from     the     grid ,       seawater       desalination ,
                    telecommunication relays ,          water pumping ,           irrigation and
                    lighthouses .      A drop in the cost to 1-1.5 ECU / Wp would open up
                    larger markets for PV .
               10.3 PV technology is still dominated by crystalline silicon .
                    Amorphous silicon technology could substantially reduce costs
                    but the stability of this material has yet to be proved and
                    there are still considerable doubts about it .                  More R&D work
                    is needed here , and also for the second line of advance in this
                    sector , the development of high efficiency cells .
               10.4 The main specific problems facing a greater market penetration
                    of PV are the need to encourage the public undertakings
                    carrying out rural electrification to consider and adopt PV
                    more widely, and the need for an efficient regional and local
                    network of designers and installers of reliable systems who are
                    able and ready to maintain the systems after installation .
                    Moreover ,      the Community 's industry will have to make a
                     considerable effort to establish itself on the world market ,
                    now dominated by Japan and the United States .
7
1 ll _ .     .
         U _ • _  _ ____       • I II      I     .   ■   I.    .       • • . •      4 AA  i i <   2
                                                                                                  w
  Wp :   Maximum power available under standard test conditions :                   100 mW / cm      at
  25°C cell temperature .
 ---pagebreak---                                  - 10 -
11 . Biomass and energy from waste
     11.1 "Biomass and waste " means not only plants in general but also
          waste from forestry and timber industries , agriculture and the
          agri-food industries , as well as the organic fraction of
          municipal waste .
          The   theoretical    energy   potential    in    the   Community   is
          substantial , amounting to some 100 million toe .        Only a small
          part of this potential is now used in the Community , although
          it is estimated that already today the economically exploitable
          potential is of the order of 40 Mtoe .        But it is difficult to
          verify this figure , mainly because the available statistics are
          unsuitable or incomplete :        consumption of firewood , for
          example , is much higher than the statistics suggest . Estimates
          of the theoretical and real energy potential of biomass at
          regional and local level need to be refined .
     11.2 There is a wide variety of technologies for biomass production
          and for using biomass and waste for energy purposes , which can
          be broadly classified as follows :
          - energy cropping
          - thermochemical conversion :          combustion ,     gasification .
             pyrolysis , carbonization
          - biological conversion : production of biogas , chemicals and
             fuels including ethanol , production of compost .
          The levels of technical maturity and economic penetration vary
          widely from one technology to another .         The methods of using
          biomass and waste for energy purposes which are technically the
          most mature and offer the best prospects of profitability are
           combustion , extraction of biogas from controlled municipal tips
           and the production of biogas by purification of the effluent of
           the agri-food industries .        The short-term development of
           energy from biomass and waste will essentially rely on these
           conversion technologies ;     the other conversion methods still
           need further comprehensive research ,             development ,    or
           demonstration .
     11.3 Besides the problems common to all renewables , the specific
           problems hindering greater energy use of biomass and waste are
           essentially :
 ---pagebreak---                                         - 11
                  - the costs of collection , transport and storage , which are
                    high compared with the energy density of the resource ;
                  - the productivity per hectare of energy crops , which is still
                    at present uneconomically low ;
                  - the difficulty, although there are technical solutions , of
                    overcoming problems of corrosion and erosion of equipment and
                    pollution by flue gases from the combustion of municipal
                    waste or refuse-derived fuels ( RDF );
                  - the shortage of qualified staff to maintain biogas production
                    installations on farms .
           11 . A It is also important to stress that the development of energy
                  crops is closely tied up with the common agricultural policy as
                  regards possible alternative uses of marginal or surplus
                  agricultural land ,    namely energy for bioindustry crops or
                  recreational areas      ( about 15 million   hectares of surplus
                  farmland are expected by the end of the century ).
                  Similarly ,  any increase in the        use of firewood must be
                  compatible with the Community 's forestry action programme for
                  the preservation and exploitation of forests , which the
                  Commission has undertaken to present to the Council .
      12 . Geothermal energy
           12.1 Geothermal resources at low and medium temperature for space
                  heating and agri-industrial uses are found widely throughout
                  the Community .    In contrast , high-temperature reservoirs for
                  electricity generation are concentrated in only a few areas .
                                                                       8
                  All these resources , shown in the Community Atlas at about 40
                  exploitable sites , could only contribute some 5 Mtoe to the
                  Community energy balance .       A third category of quite widely
                  located resources , hot dry rocks , current research on which
                  should demonstrate economic exploitation possibilities , could
                  substantially increase this potential .
8.
 Doc . EUR 6578 .
 ---pagebreak---                                  - 12 -
          For information purposes , data banks should be set up on
          exploitable and already exploited resources .      These data banks
          should also receive geological and geophysical data obtained
          during oil and natural gas prospecting in the Community .
     12.2 For low- and medium-temperature projects some difficulties have
          occurred at exploitation sites in recent years as regards the
          reinjection of fluids after use and corrosion .                These
          difficulties should not be insuperable and current RSD and
          demonstration programmes should help towards their solution .
          The development of geothermal energy technologies ( pumps ,
          exchangers etc .) should also be pursued .
     12.3 The   principal    problems   specific   to   the   development   of
          geothermal energy exploitation, besides the problems common to
          all renewables , are financial and economic .      On the financial
          side , a major part of the investment , namely well drilling ,
          which can account for 50% or more of the total cost , is subject
          to geological risk .      The cost of a production well can be as
          high as 1 million ECU per 1 000 m drilled .       Guarantee schemes
          in the form of insurance against geological uncertainties
          should be instituted, especially for district heating projects
          developed by local authorities .
     12.4 At current prices of competing forms of energy, the economic
          return may be low because of the high investment costs to be
          paid off .     In the next few years priority should be given to
          the exploitation of geothermal fields which are near the
          surface , of low-temperature and with non-corroding fluids so as
          to   reduce  to   a  minimum   both  the   risks  and   the  initial
          investment costs , and to develop and consolidate the number of
          geothermal sites which can be exploited .
13 . Wind energy
     13.1 The substantial potential of wind energy in the Community and
          its present development suggest that it could cover about 1% of
          electricity consumption in the year 2000, corresponding to
          2-3 Mtoe .
 ---pagebreak---                                     - 13 -
13.2 There are two sorts of market :      the first is for independent
     installations supplying electricity in isolated areas such as
     islands or for specific applications ,           such as pumping ,
     irrigation , refrigeration and heating .       This market would be
     served by wind turbines rated from 3 to 300 kW , almost all of
     which would be operating in parallel with a diesel engine .
     The second market is that for wind turbines feeding into the
     electricity grids .         Here ,   in theory ,     there are two
     possibilities :     machines of several hundred kW or a smaller
     number of more powerful machines of 1 MW and over .       It remains
     to be determined which solution is the most economic .
13.3 Wind generators in the Community range from 3 to 3 000 kW and
     it can now be assumed that generators of 3 to 300 kW are
     already commercially available .      However , wind turbines still
     need many improvements in order to reduce the costs of the
     energy generated      by increasing their performance and
     availability , and reducing maintenance .     Thus development will
     be in the direction of greater size , to 3 MW and over , and
     simpler equipment .
13.4 Wind energy is more economical than diesel generated energy for
     specific remote locations such as the Greek and Scottish
     islands .    The cost of generating electricity for feeding into
     the grid , at 0.03 to 0.05 ECU / kWh , is already comparable with
     the production costs of coal-fired power stations .         The cost
     per kW installed capacity in most cases is below 1 000 ECU / kW .
13.5 The main problems specific to the rapid development of wind
     energy lie in the difficulty of obtaining construction permits
     for many sites , mainly for environmental reasons , and in the
     existence of too many manufacturers of wind turbines in the
     Community , given the likely market .      Further , the obligation
     in some Member States to certify wind turbines at present
      limits intra-Community trade .
 ---pagebreak---                                    - 14 -
14 . Hydroelectricity
     14.1 The most profitable medium and large power hydroelectric sites
          ( over 10-15 MW ) have already been developed ..     But there is
          still a fairly large potential in smaller sites estimated at 4
          to 5 GW scattered fairly widely throughout the Community , which
          for various reasons have never been exploited, or not for
          several decades .     The productivity of these sites would be
          enough to cover a few percent of the Community 's electricity
          requirements , corresponding to 3-4 Mtoe .
     14.2 Harnessing these sites is usually of the greatest value to
          local communities , which can derive an income from them, and to
          small businesses , which can improve their energy budget .      In
          many cases the projects can be even more useful when they are
          multipurpose , for example combined with irrigation or drinking-
          water supply .
     14.3 The investment costs are relatively high .       In most cases at
          present they are of the order of 1 200-1 600 ECU per kW
          installed capacity depending on the site ( 20%-60% higher than
          for large nuclear or coal-fired power stations ), and production
          costs are often higher than the basic production costs of large
          conventional power stations .      The advantage for independent
          plant operators is that generating costs are nevertheless
          lower , even much lower , than the rates charged by the public
          utilities .
     14.4 On the technological aspects , electromechanical equipment has
          been improved by certain innovations in the manufacture of
          turbines and in regulation and management systems .        To meet
          world competition greater use should be made of computer
          techniques , especially computer assisted design .       Composite
          materials    for  the manufacture  of  turbines   should  also  be
          further developed in view of the advantages and gains in
          machining and handling .
     14.5 Developing these projects means that the resources must be
          known .    Many countries have carried out studies in the past ;
 ---pagebreak---                                                - 15 -
                these studies    must be   updated and   above all  they must  be
                expanded to cover environmental impact , possibilities of use
                and economic aspects .            Potential resources must be
                methodically surveyed and data banks should be set up for the
                storage , processing and dissemination of this information .
IV . CONCLUSIONS
     15 . Certain conclusions emerge from the foregoing considerations .       In
          the present state of the art , renewable energy sources can make a
          useful contribution to meeting the Community 's energy requirements .
          The contribution would vary from one country to another but in
          general would not exceed a few percentage points by the year 2000 .
          But the potential that could reasonably be exploited , together with
          hoped for technological advances ,          could make for a larger
          contribution after the turn of the century .
     16 . Progress in developing the exploitation of renewables has been
          substantial following the energy crises , thanks to the variety of
          programmes launched .     But the price trends of conventional forms of
          energy have been affecting development in recent years , and there is
          still a risk of a major slowdown which could compromise the results
          already achieved ,      demobilize researchers and engineers ,      and
          irreversibly weaken the young renewable energy equipment industry .
          This would be all the more serious in that the industry has a
          considerable development potential , capable of meeting the needs of
          the developing countries as well as those of Community countries .
     17 . The use of renewable energy sources is being hindered by several
          obstacles which are not directly related to their competitiveness .
          These are       legislative and administrative procedures which are
          inadequate or lacking altogether , barriers to the free movement of
          equipment in the advance towards completion of the internal market ,
          the terms for supplying electricity produced from renewable sources
          to the public grid , a lack of knowledge on the potential and
          possibilities offered by renewables , especially at regional and
           local level , and the lack of appropriate financing structures .
 ---pagebreak---                                   - 16 -
18 .   As regards the techniques for using renewable energy sources , in
       many cases the possibilities of exploitation have been demonstrated ;
       in other cases , more mature and high-performance technologies are
       expected to be developed if the R&D and demonstration effort is kept
     ■ up . In this context , the role of the Community programmes is
       decisive . Mention should also be made of the Community programme
       Valoren , introducing measures to encourage the exploitation of the
       indigenous energy potential in less-favoured regions .
19 .   Renewable energy development must therefore be continued with
       effective measures on a generous scale . The present detente on the
       world energy scene and abundance of conventional energy forms may
       well continue for a time - one that is difficult to predict but is
       certainly not unlimited - and those forms of energy are not
       inexhaustible . We should not now hesitate to take action to improve
       our energy supply in the future through greater diversification and
       optimum exploitation of our resources . The promotion of renewables
       is a long-term task :        it must not be allowed to depend on
       unpredictable events , nor must too much be expected of it too soon .
20 .   One of conditions necessary for the success of such a programme is
       to give renewable energies a more concrete image in the eyes of
       business , decision-makers and the general public .        At present
       renewables are usually seen as diffuse ,         undefined and more
       theoretical than real .     This partly reflects the exclusion of
       renewable energy sources from conventional energy statistics and the
       absence   in   most  countries  of  reliable   inventories   of their
       unexploited potential . These deficiencies can and should remedied .
       Further , setting up national bodies with the specific task of
       promoting renewable energies would demonstrate the reality of this
       option as well as providing a channel for government and industry 's
       efforts .
21 .   The following proposal has been drafted in this spirit . It is based
       on a number of general recommendations for a determined overall
       policy for the development of renewable energy .       The Commission
       intends to draw up proposals on more specific aspects at a later
       date , with the particular aim of overcoming one or another obstacle
       to the exploitation of each of the renewable energy sources .
 ---pagebreak---                                      - 17 -
    PROPOSAL FOR A COUNCIL RECOMMENDATION TO THE MEMBER STATES ON DEVELOPING
    THE EXPLOITATION OF RENEWABLE ENERGY SOURCES IN THE COMMUNITY
    The Council of the European Communities ,
    Having regard to the Treaty establishing the European Economic Community ,
    and in particular Article 235 thereof ,
    Having regard to the proposal from the Commission ,
    Having regard to the opinion of the European Parliament ,
    whereas in its resolution of 16 September 1986 on new Community energy
    policy objectives for 1995 and the convergence of the policies of the
                    9
    Member States     the Council adopted the objective of continuing the
    development of new and renewable energy sources and of increasing their
    contribution to the total energy balance ;
    whereas in its resolution of 26 November 1986 on a Community orientation
                                                  10
    to develop new and renewable energy sources      the Council requested the
    Commission to present proposals to develop the exploitation of renewable
    energy sources in the Community ;
    whereas these sources are indigenous and their exploitation has a
    favourable effect for the diversification and security of the Community 's
    energy supply and for the development of less favoured regions ;
    whereas the development of renewable energy sources requires appropriate
     legislative , administrative and financial measures ;
    whereas the optimum exploitation of these energy sources in the Community
    must be pursued taking account of their economic prospects and their
    availability in the Member States ;
% No C 241 , 25.9.1986.
 0J No C 316 , 1.12.1986 .
 ---pagebreak---                                    - 18 -
whereas at Community Level the efforts to develop these sources must be
made profitable , the measures launched must be mutually compatible and
the results and experience gained must be widely disseminated;
whereas , with a view to completion of the internal market , cooperation
among industries producing renewable energy exploitation equipment must
be facilitated , together with the extension of the markets ;
whereas in the present state of the technology the sources offering the
most practical development prospects in the short and medium term are
solar , geothermal and wind energy , biomass and energy from waste and
hydroelectricity, especially low power installations ;
whereas the Commission plans to draw up sectoral proposals for covering
each of these sources at a later date ,   which will include the principles
governing the contractual relations between producers of electricity
generated from renewable energy sources and public electricity suppliers ,
 ---pagebreak---                                                 19 -
       hereby recommends Member States :
       1.      to introduce legislation and administrative procedures , or adapt
               existing provisions , in the manner needed to overcome the obstacles
               to developing the exploitation of renewable energy sources ;
       2.      to pursue , including the continuation of present efforts , research
               and demonstration programmes , and periodically assess and adapt them
                in the light of technological developments ;
       3.      to complete national inventories of renewable energy resources and
               disseminate these inventories as widely as possible at regional and
                local level ;
       4.      to promote cooperation among industries producing equipment for the
               exploitation of renewable energy sources ;
       5.      with a view to the completion of the internal market , to comply with
                                                                                 11
                the information procedures laid down by Directive 83 / 189 / EEC    in
                respect of draft standards and technical rules for renewable energy
                exploitation equipment .     On the basis of these procedures , the
                Commission will examine the question of whether to propose common
                rules for the certification of equipment for the exploitation of
                renewable energy sources should there be any obstacles to their free
                movement in the Community ;
        6.      to ensure that the contractual terms governing supplies to the
                distribution companies of electricity generated by private producers
                from renewable energy sources are such as to encourage the
                exploitation of those sources ;
        7.      to provide for measures for financial support towards feasibility
                studies for projects to exploit renewable energy sources ,          in
                particular for local authorities and small and medium-sized
                enterprises ;
11
   Council Directive of 28 March 1983 laying down a procedure for the provision
   of information in the field of technical standards and regulations
   ( 83 / 189 / EEC ).
 ---pagebreak---                                 - 20 -
to establish , in accordance with its resolution of 26 November 1986,
in Member States where they do not yet exist , public advisory bodies
to prepare feasibility studies and for assembling technical and
financial packages for projects to exploit renewable energy sources ;
such bodies should also lay particular emphasis on informing the
public about the practical possibilities of exploiting these sources
and about the environmental aspects ;
to facilitate the exchange; of information concerning the development
of renewable energy sources between Member States and at Community
level , in particular by agreements for access to national data
bases ;  to assist the Commission in fully completing the Community
data base SESAME on projects carried out under national and
Community programmes ;
to devise and launch a statistical survey system for renewable
energy sources in collaboration with the Statistical Office of the
European Communities ;
to communicate regularly to the Commission the measures taken or
planned in the field covered by this recommendation and the effects
obtained or expected from these measures ;       in this context the
Commission will from time to time, on its own initiative or at the
request of a Member State , organize meetings for the exchange of
information at Community level in order to ensure that the measures
are mutually compatible .
                                   **