Assessment and optimisation of renewable support schemes in the European electricity market (OPTRES)

(EIE, proposal)
Contact:Gustav Resch
Project Team:Reinhard Haas, Claus Huber, Gustav Resch
Jan 2005
24 months
Consortium:Risø National Laboratory · Technical University of Denmark – DTU
Energy Econimics Group - EEG
Lithuanian Energy Institute
Fraunhofer Institute for Systems and Innovation Research (Fraunhofer ISI)

This project is supported by the European Commission within the framework of the Intelligent Energy for Europe programme. The consortium led by Fraunhofer ISI and consisting of six European partners analysed the effectiveness as well as the economic efficiency of currently implemented sup-port schemes for renewable energies in the electricity sector in the enlarged European Union. The project gives recommendations for future improvements of the existing promotion measures for RES-E. Furthermore the consortium has carried out an extensive stakeholder consultation, which with focus on the identification of existing market barriers to the development of renewable electricity in the EU. Key stakeholders were invited to share their experiences via a web-based questionnaire.

The effectiveness and efficiency of current and future RES-E support schemes was analysed with particular focus on a single European market for renewable electricity products. Current best practices have been identified, and an assessment is made of the (future) costs of RES-E and the relevant support necessary to initiate stable growth. The main barriers to a higher RES-E deployment as perceived by market actors and stakeholders have been assessed. The central project questions that have been analysed during the OPTRES project are:

  • What is the current level of support for RES-E in Europe compared to the corresponding costs of RES-E generation?
  • Which funding mechanisms are being implemented today? Which funding schemes should be fostered for financially viable projects?
  • Which of the currently implemented support schemes (investment incentives, feed-in law, obligation, portfolio standard, tender procedure) are the most effective and which are the most efficient?
  • Are these support schemes compatible with the principles of the internal electricity market and what are the effects of different RES-E support mechanisms on the restriction of trade?
  • Which interactions take place between the various RES-E support schemes in different countries?
  • Which interactions of RES-E support schemes with other policies like CO2 certificate trading occur?
  • To what extent are avoided external costs internalized in RES-E support schemes and what are the real socio-economical costs due to RES-E support if external costs are internalised?
  • What alternative innovative policies and regulatory frameworks are there to the currently existing ones?
  • Is a harmonisation of RES-E support in Europe preferable with respect to effectiveness and efficiency in the future and which instruments are optimal in a harmonised scenario?
OPTRES - recommendations report:
PDF File
(1498 kb)
OPTRES - final report:
PDF File
(2077 kb)
OPTRES - Potential and cost for RES-E in Europe:
PDF File
(1013 kb)
last update downloads: 2009-11-25

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