CELEX: 51998PC0301
Language: en
Date: 1998-05-05
Title: Re-examined proposal for a Council Decision concerning a multiannual programme for the promotion of renewable energy sources in the Community - Altener II

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 Brussels, 05.05.1998
                                                 COM(1998) 301 final
                                                 97/0106 (SYN)
                             Re-examined proposal for a
                               COUNCIL DECISION
concerning a multiannual programme for the promotion of renewable energy sources in
                           the Community - ALIENER H
          (presented by the Commission pursuant to Article 189 c (d)
                               of the EC Treaty)
 ---pagebreak---  ---pagebreak---   EXPLANATORY MEMORANDUM
 On 12 March 1997 the Commission adopted a proposal for a Council Decision
 concerning a multiannual programme for the promotion of renewable energy sources in
 the Community (Altener II). The proposal is based on Article 130(s) of the Treaty
 which provides for the co-operation procedure with the European Parliament. On 6
 November 1997 the Parliament gave its opinion on the first reading. A Common
 Position was reached by the Council on 19 January 1998. On 30 April 1998 the
 Parliament gave its opinion on the second reading of the above Common Position. Ten
 amendments were voted and accepted.
 The principal preoccupations of the Parliament matched those of the Commission. Of
the ten amendments proposed, the Commission accepted three in their entirety and
three were accepted in principle considering the concepts already included in the text
or in the White Paper.
One amendment concerns only a linguistic version.
Three amendments have not been accepted by the Commission for the following
reasons:
- amendment n° 3
The question of taking account of indirect costs in tariff calculation falls within the
scope not of this programme but rather of the proposals on a Community strategy for
Renewables which the Commission will be presenting separately to Parliament and
Council.
- amendment n° 8
The amount of financing will be decided in accordance with the normal budgetary
procedure, during which the budgetary authorities take all relevant aspects into
account, including questions concerning Renewables as well as greenhouse gases.
- amendment n° 10
The Comitology rules are laid down formally and this text should not provide
otherwise.
The Council is requested to adopt the decision on the basis of the attached re-
examined proposal.
                                       2
 ---pagebreak--- COMMON POSITION ADOPTED BY                     RE-EXAMINED PROPOSAL FOR A
THE COUNCIL                                    COUNCIL DECISION
concerning a multiannual programme for the     concerning a multiannual programme for the
promotion of renewable                         promotion of renewable
energy sources in the Community (Altener II)   energy sources in the Community (Altener II)
THE COUNCIL OF THE EUROPEAN                    THE COUNCIL OF THE EUROPEAN
UNION,                                         UNION,
Having regard to the Treaty establishing the   Having regard to the Treaty establishing the
European Community, and in particular          European Community, and in particular
Article 130s(l) thereof,                       Article 130s(l) thereof;
Having regard to the proposal from the         Having regard to the proposal from the
Commission    (i)
                                               Commission(1),
Having regard to the Opinion of the            Having regard to the Opinion of the
Economic and Social Committee(2),              Economic and Social Committee(2),
Having regard to the Opinion of the            Having regard to the Opinion of the
Committee of the Regions(3),                   Committee of the Regions(3),
Acting in accordance with the procedure laid   Acting in accordance with the procedure laid
down in Article 189c of the Treaty(4),         down in Article 189c of the Treaty(4),
      OJC 192, 24.6.1997, p. 16.
      OJ C 19, 21.1.1998, p.34
      OJ C 379, 15.12.1997, p. 63.
      Opinion of the European Parliament of 6 November 1997 (not yet published in the
      Official Journal), Council Common Position of 19 January 1998 and Decision of
      the European Parliament of (not yet published in the Official Journal).
                                             'I
 ---pagebreak---  (1)    Whereas Article 13Or of the Treaty     (I)   Whereas Article 13 Or of the Treaty
       provides that one of the objectives of       provides that one of the objectives of
      Community action is to ensure prudent         Community action is to ensure prudent
      and rational utilization of                   and rational utilization of
      natural resources;                            natural resources;
 (2)  Whereas Article 129 of the Treaty        (2)  Whereas Article 129 of the Treaty
      provides that health protection               provides that health protection
      requirements shall form a constituent         requirements shall form a constituent
      part of the Community's other policies;       part of the Community's other policies;
      whereas the Altener programme                 whereas the Altener programme
      contributes to health protection;            contributes to health protection;
(3)  Whereas at its meeting on                (3)   Whereas at its meeting on
     29 October 1990 the Council                   29 October 1990 the Council
     announced its objective of stabilizing        announced its objective of stabilizing
     total C0 2 emissions by 2000 at the           total C0 2 emissions by 2000 at the
      1990 level in the Community as                1990 level in the Community as
     a whole;                                      a whole;
(4)  Whereas a mechanism for monitoring       (4)  Whereas a mechanism for monitoring
     C0 2 and other greenhouse gas                 C0 2 and other greenhouse gas
     emissions in the Community was                emissions in the Community was
     established by Decision 93/389/EEC (5);       established by Decision 93/389/EEC (5);
(5)  Whereas C 0 2 emissions from energy      (5)  Whereas C0 2 emissions from energy
     consumption in the Community are              consumption in the Community are
     likely to increase by about 3% between        likely to increase by about 3% between
      1995 and 2000, assuming normal                1995 and 2000, assuming normal
     economic growth; whereas it is,               economic growth; whereas it is,
H     OJ L 167, 9.7.1993, p. 31
                                              Vj
 ---pagebreak---      therefore, essential to adopt additional          therefore, essential to adopt additional
     measures;                                         measures;
(6)  Whereas at its meeting on 25 and             (6)  Whereas at its meeting on 25 and
     26 June 1996 the Council noted that in            26 June 1996 the Council noted that in
     the framework of the negotiations on a            the framework of the negotiations on a
     protocol concerning the Berlin                    protocol concerning the Berlin
     Mandate, the Second Assessment                    Mandate, the Second Assessment
     Report of the Intergovernmental Panel             Report of the Intergovernmental Panel
     on Climate Change (SAR IPCC) had                  on Climate Change (SAR IPCC) had
     concluded that the balance of evidence            concluded that the balance of evidence
     suggested that there was a discernible            suggested that there was a discernible
     human influence on global climate                 human influence on global climate
     change and had stressed the need for              change and had stressed the need for
     urgent action at the widest possible              urgent action at the widest possible
     level, noted that significant "no-regrets"        level, noted that significant "no-regrets"
     opportunities were available and                  opportunities were available and
     requested the Commission to identify              requested the Commission to identify
    the measures that had to be taken at              the measures that had to be taken at
    Community level;                                  Community level;
(7) Whereas with the Green Paper of              (7)  Whereas with the Green Paper of
     11 January 1995 and the White Paper               11 January 1995 and the White Paper
    of 13 December 1995 the Commission                of 13 December 1995 the Commission
    communicated to the European                      communicated to the European
    Parliament and the Council its views on           Parliament and the Council its views on
    the future of energy policy in the                the future of energy policy in the
    Community and on the role that                    Community and on the role that
    renewable energy sources should play;             renewable energy sources should play;
                                                r
 ---pagebreak---  (8)   Whereas in its Resolution of            (8)   Whereas in its Resolution of
       4 July 1996 "" the European Parliament         4 July 1996 ((,) the European Parliament
       called upon the Commission to                 called upon the Commission to
       implement a Community action plan to          implement a Community action plan to
       promote renewable energy sources;             promote renewable energy sources;
 (9)   Whereas with the Green Paper of 20      (9)   Whereas with the Green Paper of 20
       November 1996 entitled "Energy for            November 1996 entitled "Energy for
       the Future: Renewable Sources of              the Future: Renewable Sources of
       Energy" the Commission started a              Energy" the Commission started a
       process for the development and further       process for the development and further
      implementation of a Community                  implementation of a Community
      Strategy and an Action Plan on                 Strategy and an Action Plan on
      Renewable Energy Sources (RES);               Renewable Energy Sources (RES);
 (10) Whereas in its Resolution of 14          (10) Whereas in its Resolution of 14
      November 1996 (7) on the Commission           November 1996 <7) on the Commission
      White Paper entitled "An Energy Policy        White Paper entitled "An Energy Policy
      for the European Union" the European          for the European Union" the European
      Parliament called upon the Commission         Parliament called upon the Commission
      to establish a financial programme            to establish a financial programme
      aimed at promoting sustainable energy;        aimed at promoting sustainable energy;
      whereas, in its Resolution of                 whereas, in its Resolution of
                     (8)
      15 May 1997        on the Green Paper         15 May 1997 (8) on the Green Paper
      entitled "Energy for the Future:              entitled "Energy for the Future:
      Renewable Sources of Energy" it               Renewable Sources of Energy" it
(6)
      OJ C 211, 22. 7.1996, p. 27.
(7)
      OJC 362, 2.12.1996, p. 279
(8)
      OJC 167, 2.6.1997, p. 160
                                                 G
 ---pagebreak---        expressly requests the adoption as soon                expressly requests the adoption as soon
        as possible of a strengthened Altener II              as possible of a strengthened Altener II
        programme,                                            programme;
 (11) Whereas Article 8 of Directive                 ( I I ) Whereas Article 8 of Directive
        96/92/EC of the European Parliament                   96/92/EC of the European Parliament
        and of the Council of                                 and of the Council of
        19 December 1996 concerning common                     19 December 1996 concerning common
        rules for the internal market in                      rules for the internal market in
        electricity (9) offers Member States the              electricity (9) offers Member States the
        possibility of furthering the penetration             possibility of furthering the penetration
        of the market in electricity produced                  of the market in electricity produced
        from renewable sources of energy by                    from renewable sources of energy by
        giving them priority.                                 giving them priority.
 ( 12) Whereas Article 13 Oa of the Treaty           (12) Whereas Article 130a of the Treaty
        provides that the Community shall                      provides that the Community shall
        develop and pursue its actions leading                 develop and pursue its actions leading
        to the strengthening of its economic and              to the strengthening of its economic and
        social cohesion and that, in particular, it           social cohesion and that, in particular, it
        shall aim at reducing disparities                     shall aim at reducing disparities
        between the levels of development of                  between the levels of development of
       the various regions and the                            the various regions and the
       backwardness of the least-favoured                    backwardness of the least-favoured
       regions; whereas those actions cover                  regions; whereas those actions cover
       inter alia the energy sector;                         inter alia the energy sector;
                                            <10)
(13) Whereas in Decision 93/500/EEC                 (13) Whereas in Decision 93/500/EEC (l0)
       the Council adopted a Community                       the Council adopted a Community
(9)
       OJ L 27, 30.1.1997, p. 20.
<10)
       OJ L 235, 18.9.1993, p. 41
                                                 >
 ---pagebreak---         programme entitled "Altenei " for the          programme entitled "Altener" for the
        promotion of renewable energy sources          promotion of renewable energy sources
        aimed at reducing CO.. emissions by            aimed at reducing C0 2 emissions by
        increasing the market share of                 increasing the market share of
        renewable energy sources and its               renewable energy sources and its
        contribution to overall primary energy         contribution to overall primary energy
        production in the Community; whereas           production in the Community; whereas
        that programme ends on                         that programme ends on
        31 December 1997,                              31 December 1997;
 ( 14) Whereas the Community has                 (14) Whereas the Community has
        recognized that the Altener programme          recognized that the Altener programme
        represents an important element of the         represents an important element of the
        Community strategy for reducing                Community strategy for reducing
        CO2 emissions,                                 ('(),> emissions.
(15) Whereas Decision I 110/94/EC of the        (15) Whereas Decision 1110/94/EC of the
       European Parliament and of the                 European Parliament and of the
       Council(11) established a fourth               Council (,,) established a fourth
       framework programme for research,              framework programme for research,
       technological development and                  technological development and
       demonstration projects; whereas policy         demonstration projects; whereas policy
       in the field of renewable energy sources       in the field of renewable energy sources
       is an important instrument for the use         is an important instrument for the use
       and promotion of the new energy                and promotion of the new energy
       technologies that the framework                technologies that the framework
       programme will develop; whereas the            programme will develop; whereas the
       Altener II programme is an instrument          Altener II programme is an instrument
       which complements that programme;              which complements that programme;
(11)
       OJ L 126, 18.5.1994, p. 1. Decision as amended by Decision No 616/96/EC
       (OJ L 86, 4 . 4 . 1 9 9 6 , p. 69).
                                           S
 ---pagebreak---  (16) Whereas the Altener II programme            (16) Whereas the Altener II programme
        does not alter national projects or             does not alter national projects or
        systems for the promotion of renewable          systems for the promotion of renewable
        resources, whereas its objective is to          resources; whereas its objective is to
        add a Community aspect that represents          add a Community aspect that represents
        added value.                                    added value,
 ( 17) Whereas, furthermore, the Fifth            (17) Whereas, furthermore, the Fifth
        Framework Programme of Research,                Framework Programme of Research,
        Technological Development and                   Technological Development and
        Demonstration should devote special              Demonstration should devote special
        attention to energy and whereas Altener         attention to energy and whereas Altener
        II should again be an important                  II should again be an important
        additional instrument in this                   additional instrument in this
        programme;                                      programme;
 ( 18) Whereas renewable energy sources are       (18) Whereas renewable energy sources are
        an important energy source for the              an important energy source for the
        European Union with considerable                European Union with considerable
        commercial potential; whereas their             commercial potential; whereas their
        development should therefore be                 development should therefore be
        supported through a specific strategy           supported through a specific strategy
        and targeted actions to make them both          and targeted actions to make them both
       viable and competitive and thus create a        viable and competitive and thus create a
       favourable environment for investment;          favourable environment for investment;
( 19) Whereas the increased use of renewable (19) Whereas the increased use of renewable
       sources of energy will have a positive          sources of energy will have a positive
       effect both on the environment and on           effect both on the environment and on
       the security of energy supplies; whereas        the security of energy supplies; whereas
       a high degree of international                  only the free and large-scale
       cooperation is desirable to achieve the         development of renewable energy
                                                9>
 ---pagebreak---        best results,                                  sources wijl make it possible fully to
                                                      exploit their economic and employment
                                                      potential; whereas a high degree of
                                                      international cooperation is desirable to
                                                      achieve the best results;
(20) Whereas a strengthened Altener II          (20) Whereas a strengthened AJtener II
       programme represents an essential              programme represents an essential
       instrument for developing the potential        instrument for developing the potential
       of renewable energy sources.                  of renewable energy sources; whereas
                                                     renewable energy sources should
                                                     account for a reasonable percentage of
                                                     the European internal energy market;
(21 ) Whereas the aim of the targeted actions (21) Whereas the aim of the targeted actions
      referred to in Article 2( i )(d) is to         referred to in Article 2( 1 )(d) is to
      facilitate and accelerate investment in        facilitate and accelerate investment in
      new operational capacity for the               new operational capacity for the
      production of energy from renewable            production of energy from renewable
      sources by providing financial support,        sources by providing financial support,
      in particular for small and medium sized       in particular for small and medium sized
      enterprises (SMEs), in order to reduce         enterprises (SMEs), in order to reduce
      the peripheral and service costs of            the peripheral and service costs of
      renewable energy projects, and thus            renewable energy projects, and thus
      overcome the non-technical obstacles           overcome the non-technical obstacles
      present; whereas those actions promote,        present; whereas those actions promote,
      inter alia, access to specialized advice,      inter alia, access to specialized advice,
      the analysis of market prospects, the          the analysis of market prospects, the
      choice of location of projects,                choice of location of projects,
      application for construction and               application for construction and
      operation permits, initiatives taken by        operation permits, initiatives taken by
      SMEs on investment in renewable                SMEis on investment in renewable
 ---pagebreak---       sources of energy, the establishment of               sources of energy, the establishment of
      financing plans, the preparation of calls             financing plans, the preparation of calls
      for tenders, the training of operators                for tenders, the training of operators
     and plant commissioning;                               and plant commissioning;
(22) Whereas those targeted actions concern           (22) Whereas those targeted actions concern
      the implementation of projects carried                the implementation of projects carried
      out in the area of biomass, including                 out in the area of biomass, including
      energy crops, firewood, residues from                 energy crops, firewood, residues from
      forestry and agriculture, municipal                   forestry and agriculture, municipal
      waste which cannot be recycled, liquid                waste which cannot be recycled, liquid
      biofuels and biogas, and in the areas of              biofuels and biogas, and in the areas of
      thermal and photovoltaic solar systems,               thermal and photovoltaic solar systems,
      passive and active solar systems in                   passive and active solar systems in
      buildings, small scale (<10 MW)                       buildings, small scale (<10 MW)
      hydroelectric projects, wave energy,                  hydroelectric projects, wave energy,
      wind power and geothermal energy;                     wind power and geothermal energy;
(23) Whereas the development of renewable            (23 ) Whereas the development of renewable
      energy sources can help create a                     energy sources can help create a
     competitive energy system for the                     competitive energy system for the
     whole of Europe and develop a                         whole of Europe and develop a
     European renewable energy sources                     European renewable energy sources
     industry, with vast opportunities for the             industry, with vast opportunities for the
     export of know-how and for investment                 export of know-how and for investment
     in third countries involving Community                in third countries involving Community
     participation;                                        participation;
(24) Whereas in implementing the                     (24) Whereas in implementing the
     programme, there should be close                      programme, there should be close
     cooperation with other Community                      cooperation with other Community
     actions and programmes also concerned                 actions and programmes also concerned
                                               ) • •  )
 ---pagebreak---         with promoting renewable energy                with promoting renewable energy
        sources;                                       sources;
 (2.5) Whereas in order to ensure that            (25) Whereas in order to ensure that
        Community aid is used efficiently the          Community aid is used efficiently the
        Commission will ensure that projects           Commission will ensure that projects
       are subject to thorough prior appraisal;        are subject to thorough prior appraisal;
       whereas it will systematically monitor          whereas it will systematically monitor
       and evaluate the progress and results of        and evaluate the progress and results of
       supported projects;                             supported projects;
(26) Whereas a financial reference amount         (26) Deleted
       within the meaning of point 2 of the
       Declaration by the European
       Parliament, the Council and the
       Commission of 6 March 1995 is
       included in this Decision for the entire
       duration of the programme, without
       thereby affecting the powers of the
       budgetary authority as they are defined
       by the Treaty;
(27) Whereas it is politically and                (27) Whereas it is politically and
       economically desirable to open the              economically desirable to open the
       Altener II programme to the associated          Altener II programme to the associated
       Central and Eastern European countries          Central and Eastern European countries
       in accordance with the conclusions of           in accordance with the conclusions of
       the Copenhagen European Council of              the Copenhagen European Council of
        21 and 22 June 1993, and as outlined in        21 and 22 June 1993, and as outlined in
        the communication on that subject              the communication on that subject
        presented to the Council by the                presented to the Council by the
                                                ^
 ---pagebreak---        Commission in May 1994; whereas it                Commission in May 1994; whereas it
       should also be open to Cyprus,                    should also be open to Cyprus,
 HAS ADOPTED THIS DECISION;                       HAS ADOPTED THIS DECISION:
 Article I                                        Article I
 I   A multiannual programme of measures          I   A multiannual programme of measures
and actions to promote the use of renewable      and actions to promote the use of renewable
energy sources in the Community, called          energy sources in the Community, called
 Altener II, hereinafter referred to as "the     Altener II, hereinafter referred to as "the
programme", is hereby established                programme", is hereby established.
The objectives of the programme shall be to:     The objectives of the programme shall be to:
(a)    help create the necessary conditions for  (a)    help create the necessary conditions for
       the implementation of a Community                the implementation of a Community
       action plan for renewable energy                 action plan for renewable energy
       sources, and in particular the legal,            sources, and in particular the legal,
       socio-economic and administrative                socio-economic and administrative
       conditions;                                      conditions;
(b)    encourage private and public              (b)    encourage private and public
       investments in the production and use            investments in the production and use
       of energy from renewable sources.                of energy from renewable sources.
These two specific objectives shall contribute   These two specific objectives shall contribute
to achieving the following overall Community     to achieving the following overall Community
objectives - complementing those of the          objectives    complementing those of the
Member States - and priorities: the limitation   Member States - and priorities: the limitation
of CO2 emissions, increasing the share of        of C0 2 emissions, increasing the share of
renewable energy sources in the energy           renewable energy sources in the energy
                                               •13
 ---pagebreak---  balance, reduction in energy import              balance, reduction in energy import
 dependence, security of energy supply,           dependence, security of energy supply,
 promotion of employment, economic                promotion of employment, economic
 development, economic and social cohesion        development, economic and social cohesion
 and local and regional development, including    end local and regional development, including
 the strengthening of the economic potential of the strengthening of the economic potential of
 remote and peripheral regions.                   remote and peripheral regions.
 2. Community financial support shall be          2. Community financial support shall be
 granted under the programme for actions          granted under the programme for actions
 meeting the objectives set out in                meeting the objectives set out in
 paragraph 1(a) and (b).                          paragraph 1(a) and (b).
 3. The financial reference amount for the        3. Thefinancialreference amount for the
 implementation of the programme shall be         implementation of the programme shall be
 ECU 22 million. The annual appropriations        ECU 22 million. The annual appropriations
 shall be authorized by the budget authority      shall be authorized by the budget authority
 within the limits of the financial perspective. within the limits of the financial perspective.
 Article 2                                        Article 2
The following actions and measures relating      The following actions and measures relating
to renewable energy sources shall be financed    to renewable energy sources shall be financed
under the programme:                             under the programme:
(a)    studies and other actions, intended to    (a)    studies and other actions, intended to
       implement and complement other                   implement and complement other
       measures by the Community and                    measures by the Community and
       Member States taken to develop the               Member States taken to develop the
       potential of renewable energy sources.           potential of renewable energy sources.
       These involve in particular the                  These involve in particular the
       development of sectoral and market               development of sectoral and market
                                             Av
 ---pagebreak---      strategies, the development of norms           strategies, the development of norms
     and certification, facilitating grouped        and certification, facilitating grouped
     procurement, analyses, based on                procurement, analyses, based on
     projects, comparing the environmental          projects, comparing the environmental
     impact and the long-term cost/benefit          impact and the long-term cost/benefit
     trends resulting from the use oi^              trends resulting from the use of
     traditional forms of energy and the use        traditional forms of energy and the use
     of renewable energy sources, the               of renewable energy sources, the
     analysis of the legal, socio-economic          analysis of the legal, socio-economic
     and administrative conditions, including       and administrative conditions, including
     analysis of the possible use of economic       analysis of the possible use of economic
     measures, and/or tax incentives which          measures, and/or tax incentives which
     are more favourable to the market             are more favourable to the market
     penetration of renewable energies, the         penetration of renewable energies, the
     preparation of appropriate legislation to     preparation of appropriate legislation to
     promote an environment favourable to          promote an environment favourable to
    investment and better methods which            investment and better methods which
    make it possible to evaluate the costs         make it possible to evaluate the costs
    and benefits that are not reflected in the     and benefits that are not reflected in the
    market price;                                  market price;
(b) pilot actions of interest to the           (b) pilot actions of interest to the
    Community aimed at creating or                 Community aimed at creating or
    extending structures and instruments           extending structures and instruments
    for the development of renewable               for the development of renewable
    energy sources in:                             energy sources in:
        local and regional planning,                   local and regional planning;
        the tools for planning, design and             the tools for planning, design and
        evaluation;                                    evaluation;
        new financial products and market              new financial products and market
        instruments;                                   instruments;
                                           Ay
 ---pagebreak--- (c)  measures intended to develop             (c)   measures intended to develop
     information, education and training            information, education and training
     structures; measures to encourage the          structures; measures to encourage the
     exchange of experience and know-how            exchange of experience and know-how
     aimed at improving coordination                aimed at improving coordination
     between international. Community,              between international. Community,
     national, regional and local activities,       national, regional and local activities;
     establishment of a centralized system          establishment of a centralized system
     for collecting, prioritizing and               for collecting, prioritizing and
    circulating information and know-how           circulating information and know-how
    on renewable energy sources,                   on renewable energy sources;
(d) targeted actions facilitating the market  (d)  targeted actions facilitating the market
    penetration of renewable energy                penetration of renewable energy
    sources and relevant know-how, in              sources and relevant know-how, in
    order to facilitate the transition from        order to facilitate the transition from
    demonstration to marketing, and                demonstration to marketing, and
    encouraging investment, by advising on         encouraging investment, by advising on
    the preparation and presentation of            the preparation and presentation of
    projects and their implementation;             projects and their implementation;
(e) monitoring and evaluation actions         (e)  monitoring and evaluation actions
    intended to:                                   intended to:
         monitor the implementation of the              monitor the implementation of the
        Community strategy and action plan             Community strategy and action plan
        for the development of renewable               for the development of renewable
        energy sources;                                energy sources;
        support initiatives taken in                   support initiatives taken in
        implementing the Action Plan,                  implementing the Action Plan,
                                               /
                                                 IC
 ---pagebreak---           particularly with a view to                      particularly with a view to
          promoting better coordination and                promoting better coordination and
          greater synergy between actions,                 greater synergy between actions,
          including all Community funded                   including all Community funded
          activities and those funded by other             activities and those funded by other
          bodies such as the European                      bodies such as the European
          Investment Bank,                                  Investment Bank,
          monitor the progress achieved by                 monitor the progress achieved by
          the Community and comment on                     the Community and comment on
          that achieved by the Member States               that achieved by the Member States
          with regard to the development of                with regard to the development of
          renewable energy sources;                        renewable energy sources.
          evaluate the impact and cost                     evaluate the impact and cost
          effectiveness of actions and                     effectiveness of actions and
          measures undertaken under this                   measures undertaken under this
          programme       This evaluation shall            programme. This evaluation shall
          also take into account the                       also take into account the
          environmental and social aspects,                environmental and social aspects,
          including the effects on                         including the effects on
          employment.                                      employment.
Article 3                                        Article 3
 1. All costs relating to the actions and         I  All costs relating to the actions and
measures referred to in Article 2( I )(a), (c)   measures referred to in Article 2( 1 )(a), (c)
and (e) shall be borne by the Community.         and (e) shall be borne by the Community.
Where a body other than the Commission           Where a body other than the Commission
proposes a measure covered by (c), the           proposes a measure covered by (c), the
Community's financial contribution shall not     Community's financial contribution shall not
exceed 50% of the total cost of the measure,     exceed 50% of the total cost of the measure;
                                                04
 ---pagebreak---  the balance may be defrayed by public or          the balance may be defrayed by public or
 private sources or a combination of the two       private sources or a combination of the two.
 2. The level of funding under the programme       2. The level of funding under the programme
 for the actions and measures referred to in       for the actions and measures referred to in
 Article 2( 1 )(b) shall not exceed 50% of their    Article 2( 1 )(b) shall not exceed 50% of their
 total cost; the balance may be defrayed by        total cost, the balance may be defrayed by
 public or private sources or a combination of     public or private sources or a combination of
 the two.                                          the two
 3    The level of funding under the programme     3    The level of funding under the programme
 for the actions and measures referred to in       for the actions and measures referred to in
 Article 2( 1 ){d) shall be established annually    Article 2( 1 )(d) shall be established annually
for each of the targeted actions in accordance    for each of the targeted actions in accordance
 with Article 4(2).                                with Article 4(2).
 Article 4                                         Article 4
 1. The Commission shall be responsible for        1   The Commission shall be responsible for
the financial execution and implementation of     the financial execution and implementation of
the programme. It shall also ensure that          the programme It shall also ensure that
actions under the programme are subject to        actions under the programme are subject to
prior appraisal, monitoring and subsequent        prior appraisal, monitoring and subsequent
evaluation which, on completion of the            evaluation which, on completion of the
project, shall include assessment of impact,      projecl, shall include assessment of impact,
extent of implementation and whether the          extent of implementation and whether the
original objectives have been achieved The        original objectives have been achieved. The
Commission shall ensure that the selected         Commission shall ensure that the selected
beneficiaries submit reports to -he               beneficiaries submit reports to the
Commission at least on a six-monthly basis        Commission at least on a six-monthly basis
or, in the case of projects lasting less than one or, in the case of projects lasting less than one
year, at the halfway point and on completion.     year, at the halfway point and on completion.
 ---pagebreak---   The Commission shall keep the committee              The Commission shall keep the committee
 provided for in Article 5 informed of the            provided for in Article 5 informed of the
 development of projects                              development of projects
 2. The conditions and guidelines to be               2    The conditions and guidelines to be
 applied for the support of the actions and           applied for the support of the actions and
 measures referred to in Article 2( I ) shall be     measures referred to in Article 2( I ) shall be
 defined each year taking into account               defined each year takinu into account:
 (a)    the priorities set out by the Community      (a)     the priorities set out by the Community
        and the Member States in their                       and the Member States in their
        programmes for the promotion of                      programmes for the promotion of
        renewable energy sources,                            renewable energy sources;
(b)     criteria relating to the cost effectiveness  (b)     criteria relating to the cost effectiveness
       and development potential of renewable               and development potential of renewable
       energy sources and their impact on                   energy sources and their impact on
       employment and the environment, in                   employment and the environment, in
       particular the reduction of C0 2                     particular the reduction of CO2
       emissions;                                           emissions;
(c)    for the actions referred to in Article       (c)     for the actions referred to in Article
       2(1 )(d), the relative cost of the                   2( 1 )(d), the relative cost of the
       assistance, the long-term commercial                 assistance, the long-term commercial
       viability, the new production capacity               viability, the new production capacity
       expected to arise and the extent of                  expected to arise and the extent of
       transregional and/or transnational                   transregional and/or transnational
       benefits;                                            benefits;
(d)    the principles established in Article 92     (d)     the principles established in Article 92
       of the Treaty and the relevant                       of the Treaty and the relevant
                                                13
 ---pagebreak---         Community guidelines on Slate aid for            Community guidelines on State aid for
        environmental protection                         environmental protection
 The committee provided loi in Article 5 shall    The committee provided for in Article 5 shall
 assist the Commission in defining these          assist the Commission in defining these
 conditions and miidclincs                        conditions and guidelines
 Article 5                                        Article •>
 The Commission shall be assisted by a            Tin- Commission shall be assisted by a
 committee composed of representatives of the     committee composed of representatives of the
 Member States and chaired by the                 Member States and chaired by the
representative of the Commission                  representative of the Commission
The representative of the Commission shall        The representative of the Commission shall
 submit to the committee a draft of the           submit to the committee a draft of the
measures to be taken The committee shall          measures to be taken The committee shall
deliver its opinion on the draft, within a       dchvci its opinion on the draft, within a
time-limit which the chairman may lay down       time-limit which the chairman may lay down
according to the urgency of the matter     The   according to the urgency of the matter The
opinion shall be delivered by the majority laid  opinion shall be delivered by the majority laid
down in Article 148(2) of the Treaty in the      down in Article 148(2) of the Treaty in the
case of decisions which the Council is           case of decisions which the Council is
required to adopt on a proposal from the         required to adopt on a proposal from the
Commission      The votes of the representatives Commission The votes of the representatives
of the Member States within the committee        of the Member States within the committee
shall be weighted in the manner set out in that  shall be weighted in the manner set out in that
Article The chairman shall not vote              Article     The chairman shall not vote
The Commission shall adopt measures which         The Commission shall adopt measures which
shall apply immediately However, if these        shall apply immediately. However, if these
measures are not in accordance with the          measures are not in accordance with the
                                                   Zc
 ---pagebreak--- opinion of the committee, they shall be           opinion of the committee, they shall be
communicated by the Commission to the              communicated by the Commission to the
Council forthwith     In that event                Council forthwith    In that event:
 (a)   the Commission may defer application        (a)   the Commission may defer application
       of the measures which it has decided for          of the measures which it has decided for
       a period of not more than one month               a period of not more than one month
       from the date of such communication,              from the date of such communication;
(b)    the Council, acting by a qualified          (b)   the Council, acting by a qualified
       majority, may take a different decision           majority, may take a different decision
       within the time-limit referred to in point        within the time-limit referred to in point
       (a).                                              (a)
Article 6                                         Article 6
 I   During the second year of the                 I   During the second year of the
programme, the Commission shall present a         programme, the Commission shall present a
report to the European Parliament, the            report to the European Parliament, the
Council, the Economic and Social Committee        Council, the Economic and Social Committee
and the Committee of the Regions on the           and the Committee of the Regions on the
measures taken to promote renewable energy        measures taken to promote renewable energy
sources at the level of the Community and of      sources at the level of the Community and of
the Member States, with reference in              the Member States, with reference in
particular to the objectives set out in           particular to the objectives set out in
Article 1. That report shall be accompanied       Article I That report shall be accompanied
by proposals for any amendments to the            by proposals for any amendments to the
programme which may be necessary in the           programme which may be necessary in the
light of those results.                           light of those results.
2. On the expiry of the programme, the            2    On the expiry of the programme, the
Commission shall assess the results obtained      Commission shall assess the results obtained
                                             21
 ---pagebreak---  from the application of this Decision on the      from the application of this Decision on the
 basis of a report by independent experts and     basis of a report by independent experts and
 the consistency of national and Community         the consistency of national and Community
 actions It shall present a report thereon to     actions It shall present a report thereon to
 the European Parliament, the Council, the         the European Parliament, the Council, the
 Economic and Social Committee and the             Economic and Social Committee and the
 Committee of the Regions                         Committee of the Regions
 Article 7                                         Article 7
The programme shall be open to participation       The programme shall be open to participation
by associated ("entrai and Eastern European       by associated Central and Eastern European
countries (CEEC) in accordance with the           countries (CEEC) in accordance with the
conditions, including financial provisions, laid  conditions, including financial provisions, laid
down in the additional protocols to the           down in the additional protocols to the
Association Agreements, or in the                 Association Agreements, or in the
Association Agreements themselves, relating       Association Agreements themselves, relating
to participation in Community programmes          to participation in Community programmes
The programme shall also be open to               The programme shall also be open to
participation by Cyprus on the basis of           participation by Cyprus on the basis of
additional appropriations, under the same         additional appropriations, under the same
rules as those applied to E1TA/EEA                rules as those applied to EFTA/EEA
countries, in accordance with procedures to       countries, in accordance with procedures to
be agreed with that country                       be agreed with that country.
Article 8                                         Article 8
This Decision shall apply from 1 January 1998 This Decision shall apply from I January 1998
until the entry into force of the multiannual     until the entry into force of the multiannual
framework programme for measures in the           framework programme for measures in the
energy sector and until 31 December 1999 at       energy sector and until 31 December 1999 at
the latest.                                       the latest.
                                                 2^
 ---pagebreak--- Article 9                                  Article 9
This Decision is addressed to the Member    This Decision is addressed to the Member
States.                                    States
Done at Brussels,                          Done at Brussels,
For the Council                            loi the Council
The President                              The President
                                         I <
 ---pagebreak---  ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(98) 301 final
                                              DOCUMENTS
EN                                                            12 14 10 01
                                    Catalogue number : CB-CO-98-300-EN-C
                                                             ISBN 92-78-35943-2
Office for Official Publications of the European Communities
L-2985 Luxembourg
                                            z1