Commission calls for a more coordinated European approach to increase renewable energy trading

The Communication presented by the European Commission calls for a more coordinated European approach in the establishment and reform of support schemes and an increased use of renewable energy trading among Member States. In addition, it also indicates four main areas where efforts should be stepped up until 2020 to achieve EU renewable energy goals whilst being cost-efficient.

The European Commission presents a Communication which calls for a more coordinated European approach among Member States if the EU wants to achieve the committed 20% share of renewable energy by 2020. Furthermore, according to the commission the fact that investors need regulatory certainty makes crucial to start discussing the future and building a solid framework beyond 2020. In March 2012, MEPs already adopted a resolution which calls to increase the CO2 emissions reduction for 2050.

The Communication indicates four main areas where efforts should be stepped up until 2020. The Commission insists on the need to complete the internal energy market and acknowledges the need to address power generation investment incentives in the market to allow for a smooth integration of renewables into the market. Besides, it favours schemes that encourage cost reductions and avoid over compensation. It also encourages an increased use of the cooperation mechanisms contained in the Renewable Energy Directive, and suggests improvements to the regulatory framework. Besides the Commission stresses that an integrated regional market in the Maghreb would facilitate large-scale investments in the region and enable Europe to import renewable electricity.

With regard to beyond 2020, the Commission proposes to start the process on preparing future policy options and milestones for 2030. It identifies new goals for GHG (Greenhouse gas emissions) but no goals for renewable energy. ETS would be the main instrument to cut down on CO2 emissions. It also proposes as EU wide targets and national targets, renewable energy, energy efficiency and GHG. Moreover, the Commission stresses that it is crucial to identify 2030 milestones as soon as possible. These should enable renewable energy producers to be increasingly competitive players in the European energy market.