Acceleration of European RES-E grid integration by ensuring an attractive business environment for key stakeholders realising RES-E projects (Re-Xpansion)

  • Finished
  • Started: Apr 2003
  • Ended: Apr 2005


Project description

The aim of the project is to increase understanding of the impact of different national policy support mechanisms on the development of renewable energy technologies in an Internal Electricity Market, and their ability to meet the 12% renewable energy target in 2010. It is important to better understand if and how these mechanisms (or a single European-wide harmonized mechanism) would be able to meet the European Commission White Paper indicative target to meet 12% of European gross domestic energy consumption with renewable energy by 2010. The main product of this work is practical guidelines for policymakers as well as decision makers among stakeholders in the European renewable energy sector.

The expansion of renewable electricity in Europe will entirely depend on the conditions in place at national and EU levels. As the EU gradually moves towards the implementation of renewable energy in the Internal Electricity Market, the need for harmonization and removal of barriers to trade becomes increasingly evident. Unless stable conditions for investment exist it will be impossible to meet the EU’s ambitious goals. RE-XPANSION will bridge the gap between the theoretical economic analysis of possible European-wide systems, the regulatory framework and the actors active in the renewable energy industries.


1. Analyse costs, current and needed regulatory environment, and identify trade barriers.

2. Simulate the effects on RES-E development of a European-wide framework based on various support mechanisms such as investment subsidies, fixed feed-in tariffs, fixed premium, taxes, tendering and Renewable Portfolio Standard.

3. Analyse the investment behaviour of stakeholders such as developers, financiers and manufacturers and derive requirements for stable conditions in the RES-E market.

4. Evaluation of how a European-wide framework for promotion of RES-E could develop, taking into account EU intentions to internalise the external costs of electricity generation.

5. Identify pitfalls and recommend best practice guidelines for the development of a European-wide framework.

6. Develop action plan for practical implementation of selective support mechanisms, taking into consideration existing trade barriers and stakeholder behaviour and requirements.

7. Disseminate results and recommendations.

Last updated: 01 Jun 2005