COMMUNICATION FROM THE COMMISSION The support of electricity from renewable energy sources

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This report presents an updated review of the performance of support schemes using the same indicators presented in the 2005 report. It finds that, as in 2005, well-adapted feed in tariff regimes are generally the most efficient and effective support schemes for promoting renewable electricity.

This report also examines the relationship between support schemes and the internal electricity market, including current policy proposals to increase competition, the application of rules on the free movement of goods. The report underlines the need to improve the competitive situation on the internal electricity market, and recalls the need for implementing the Commission proposals regarding unbundling, improved regulatory oversight and cooperation, network cooperation and transparency. These proposals are vital in order to improve the market access for renewable electricity. It also concludes that it is important that the design of support systems is compatible with a competitive internal electricity market. If the renewable electricity is traded on the electricity market, it can contribute to the development of a more competitive market through for example a more diversified supply structure. Member States' efforts to coordinate and optimise their support regimes are then examined. Several Member States have adapted their support schemes to optimise or improve their effectiveness and there have been some efforts to coordinate between Member States. Administrative, grid and market barriers are also discussed as these can have an important impact on the performance of support schemes.


Download the 2005 communication here or the 2008 updated review here.