European report calls for major increase in support for renewables

BRUSSELS, Belgium, September 7, 2005 (Refocus Weekly)

A committee of the European Parliament has called for at least Euro 300 million a year to be dedicated to renewable energies.

A report from the committee on industry, research and energy “insists that in the 7th Framework Programme for Research & Technological Development (FP7), a minimum of Euro 300 million a year be dedicated to renewable energies and Euro 200 million a year to energy efficiency, to compensate the historical bias in EU energy research programs.” It stresses that FP7 must include increased funding for renewable sources of energy and energy efficiency and “stresses the need to bridge the gap between the demonstration, dissemination and marketing of renewable energy technologies and to focus on research into offshore windparks.”

The EU has released numerous communications and directives on the promotion of green power and green fuels, and the report says “it must be conveyed with greater emphasis to the Commission that environmental objectives must be achieved more than is currently the case throughout the whole Community.” It encourages the EC to “continue to develop an ambitious and, at the same time, realistic strategy in the area of renewable energies,” and notes the potential from 21 different renewable energy technologies which cover all geographical areas and all relevant energy uses.

“Renewable energies are the fastest growing sector of the energy industry in Europe and even worldwide, with a growth rate above 20% a year in wind and solar PV, and that the development of renewable energy technologies has created more than 300 000 jobs,” it explains. There have been “impressive price reductions” in different renewables technologies, in some cases of 50% in 15 years, but “further price reductions must be achieved, which will require the provision of strong incentives.”

“The EU is a world leader in most renewable energy technologies as a result of the efforts in some Member States and (it) calls on new EU-wide initiatives and directives” and “stresses the importance of setting mandatory targets for 2020 to give a clear signal to market actors ... that renewable energies are the future of energy in the EU and part of its environment and industrial strategy.” It considers incentives and tax cuts to be “an effective way to promote renewable energies (and) encourages the Member States to use such instruments; encourages the EC to abolish all obstacles to such action by the Member States.”

Heating and cooling are “a major market for low-temperature renewable energies,” with 40% of energy use in the EU being consumed in green heat applications. The report “urges a systemic approach that will integrate best available technologies for reducing heat and cooling demand with low-density energy from low-temperature renewables or from co- or tri-generation units.”

The EU wants 21% of electricity to come from renewables, and it welcomes the introduction by Germany and Spain of an “adequate policy framework” to fulfil their national targets, but notes that other governments are not forecast to meet their targets. It urges the EC to consider a directive that would introduce binding national targets, and asks for the removal of all administrative and political barriers to allow free access to the grid, with non-discriminatory tariffs, for renewable sources of electricity.

Generation of power from renewable technologies, “mainly photovoltaic,” is still very expensive, and the report encourages the EC and member states to “promote measures to reduce the cost, mainly through research and development, and to draft incentives in such a way that improvement of technology and reduction in costs will continue.” It also wants the EC to allow for the ‘polluter pays’ principle and the internalisation of external costs for every energy resource.

The committee “regrets that the EU has so far failed to provide the support needed for solar thermal power station technology to be introduced onto the market” and calls on the EC to enable “the great potential of this technology to be tapped on a larger scale.” It also regrets that “the enormous potential of biomass in the field of renewable energies has not been exploited in line with its technically potential at feasible cost” and encourages an ambitious plan to include “concrete, legally binding proposals” to exploit that source.

“In the energy field, all non-mature energy technologies need a certain amount of support in the first years of development” and it quotes the IEA that only 8.2% of total energy R&D funds of OECD countries were allocated to renewables between 1974 and 2001. It calls on the EIB and the EBRD to set escalating targets for the share of renewables in their respective energy loans portfolio and to make the prevention of GHG emissions “an indispensable criterion in the selection of projects to be supported.”

“Renewables have the potential to cover over 80% of all energy needs at the end of this century,” it concludes. “How quick this will happen is depending on the right mix of policy instruments efficiently applied at the relevant levels, EU, national, regional and local.”


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