May 14 (Renewables Now) - The European Commission (EC) is looking for feedback on draft rules for a new renewables financing mechanism that would allow member states to support projects in other countries and still achieve progress towards their own EU targets.
The feedback procedure will last four weeks. Depending on the outcome and based upon a positive EU committee vote, the implementing act could be adopted between July and October, the EC said in a statement.
The mechanism in question enables member states that are having difficulties meeting their individual renewable energy target to pay voluntary financial contributions into the scheme. These will then be used to tender support for new projects regardless of the location. The new renewable energy capacity would count towards the targets of the contributing country, while the member state where the plant is built will benefit from job creation, a reduction in greenhouse gases emissions, improved air quality, a modernised energy system and lower energy imports.
Another advantage for both sides is that neither the contributing country nor the project host would have to negotiate transactions as the process is run directly by the EC.
"This new mechanism will provide another option for Member States to contribute to our energy and climate targets, investing in locations where renewable resources are abundant and developing them makes the most sense," Kadri Simson, commissioner for energy, said. She added that this mechanism could help stimulate the economy in member states that are hit hard by the COVID-19 crisis. This will happen through the implementation of large-scale projects and by supporting local small and medium-sized enterprises (SMEs) and creating jobs.
The EC noted that the mechanism should be in place by the beginning of next year.