Investing in RES & RUE technologies

Models for saving public money

  • Finished
  • Started: May 2003
  • Ended: May 2005


Project description


Currently, EU-wide significant inefficiencies with regard to the public promotion of different types of energy technologies exist. The major reasons for this fact are:

  • money spent is not targeted;
  • rebates are too high;
  • money is spent without any performance requirement of the technology.

The objective of this project is to provide a comprehensive tool and related recommendations for the design of efficient financial support systems for renewable energy sources (RES) and energy efficiency (RUE). These new promotion systems are targeted using a least-cost approach and a rigorous benchmarking system. This ensures that a higher share of RES as well as substantial efficiency improvements are brought about with less public money. Financial support systems for fossil fuels are also considered. In order to identify the optimum solution for a region or a country by means of minimising public expenses a computer simulation tool is developed.

The work of this project is broken down in the following work phases:

  • Review of current financial support systems for energy technologies in EU countries;
  • Technology evaluation: analysis of the efficiency, degree of maturity, and likely technological progress of technologies;
  • Development of a database of costs and potentials (“Cost curves”) of RES and RUE technologies;
  • Stakeholder behaviour: analysis of the groups involved (consumers, retailers, politicians) and their behaviour related to the type of promotion scheme;
  • Development of a computer model to simulate the links between technologies, energy consumption, CO2 emissions, financial incentives and other energy policies;
  • Assembly of case studies for important regions with many subsidies;
  • Derivation of action plans for changing the current promotion scheme on an EU level as well as for single European countries and regions;
  • A comprehensive dissemination campaign that completes the project.

The major result will be a simple and transparent incentive-based approach to promote RES and RUE with minimum public costs. It takes into account the typical features of single regions and technologies and ensures that location-tailored support systems are implemented. The main products/deliverables from this work will be:

  • A computer-based simulation model applicable for EU countries as well as for associate Member States together with energy policy strategies.
  • A comprehensive database with cost curves for technologies (e.g. PV, fuel cells, small CHP, heat pumps, wind turbines, building insulation, biomass boilers).
  • A detailed action plan describing step-by-step how to approach the optimum portfolio of instruments for successful simultaneous implementation of RES and RUE technologies in different EU countries.
  • A comprehensive dissemination package by Internet, WebPages, CD-ROMs, and workshops in Athens, Copenhagen, Vienna, Paris, Krakow, Brussels, Karlsruhe and London will ensure a broad dissemination of the results.

Last updated: 01 Jun 2005