Brussels urges member states to limit public support for renewable energy

The European Commission said it recommends financial support to renewable energy in the member states to be limited to what is necessary so that renewables to be made competitive.

“Support schemes should be flexible and respond to falling production costs. As they mature, technologies should be gradually exposed to market prices and eventually support must be fully removed,” the Commission said in a press release on Tuesday.

Renewable energy - both wind and solar - was for a long time a new technology that needed state intervention to develop but with technological progress, investment costs in solar panel falling and production expanding, many EU member states have started a reform of their support schemes for renewables. The Commission has, therefore, proposed several principles that might be used by member states planning to reform their schemes.

According to the proposed principles, governments must avoid unannounced or retroactive scheme changes and member states should better coordinate their renewable energies strategies to keep costs low for consumers - in terms of energy prices and taxes.

The European Commission will consider whether to propose legal instruments to ensure that the proposed principles are fully implemented.

The EU has set ambitious climate and energy targets, according to which by 2020 it should achieve a 20% reduction in greenhouse gas emissions, a 20% share for renewable in the EU energy mix and a 20% increase in energy efficiency.

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