CTO Assessment - European Commission

As for World Bank/GEF funds, in
Poland, a joint implementation initiative
aligned on the Kyoto instruments
to reduce greenhouse gases led
to the replacement of two old coalburning
tanks with a wood fired heating
system.
Economic challenge can otherwise be
overcome if local energy communities
take clear long-term commitment to
massively develop RES (often up to
100%): if investors are well informed
of this plan and of the solid measures
accompanying such an objective, securing
returns on investment, they feel
encouraged to invest in RES.
This is a particularly interesting option
for isolated areas, such as islands
or remote rural areas, which need
otherwise to import conventional energy
at a higher cost than average
cost in the rest of the regions.
The ways to overcome those barriers
at local and regional level can be to
offer tax relief schemes. However this
solution has proven to be successful
for investments by householders in
small scale renewable electricity generators,
but do discourage investments
by developers who do not become the
final owners of the renewable electricity
generators, and therefore cannot
claim the tax relief at the time of
their investment.
In the sector of biofuel transport, the
Directive on biofuels recently adopted
gives the possibility to apply fiscal
advantages for encouraging the use
of renewable energy and improving
energy efficiency in their countries,
therefore this should enable to integrate
RES in the transport sector too,
a sector often still neglected.
A number of financial incentive
schemes are beginning to emerge at
a national or regional level in the EU
in the heating and cooling sector. At
local level new approaches are being
developed, such as the solar ordinances
which have been approved by
numerous Spanish municipalities,
and these could for example be used
as a model to be followed in other
countries.
Beside the above considerations, other
major barriers in developing RESelectricity
in Europe are:
Administrative procedures for planning
and building approvals:
A long and complicated administration
procedure can impede a project
developer to start the implementation
administrative body. Sometimes, the
waiting period can be several years.
A way to overcome this barrier is to
clarify the responsibilities of the different
authorities in charge to give
their opinion during a RES licensing
process, or also to put the custom
through that “no response” received
within a time frame is considered to
be a positive answer. The legislation
framework needs to be adapted accordingly
to issue guarantees of origin,
to ensure transparency of grid
connection costs, and to facilitate
access to electricity grids at each of
the required voltage levels
Technical Barriers – Grid Issue:
In some cases grid access was difficult
to achieve. However, the Directive
on the promotion of electricity
produced from renewable energy
sources in the internal electricity
market has ruled out the path to follow
to accomplish the full integration
of renewable energy in the existing
grid system in Europe. The Directive
requires member states to take the
necessary measures to grant guaranteed
access to the transmission and
distribution of electricity from renewable
energy sources. Where appropriate,
member states have to give priority
access to renewable energy
sources. Furthermore European-wide,
network operators will be obliged to
set up transparent cost calculations
for distribution. The fees have to be
non-discriminatory.
Political challenges:
The initial monopoly is still important
in some countries, despite the statements
that the liberalization process
of the electricity market is on-going.
In Varese Ligure, for instance, it was
difficult to install the wind turbines
because of the need to find agreement
with the national utility. Another element
playing a key role in a few countries
is the strong anti-RES lobby such
as coming from the nuclear and other
conventional energy fuels. There is no
need to say that the political will depends
if the local population is sufficiently
motivated to push forward renewable
energy projects.
Lack of public awareness:
All projects demonstrated that the
local level is the driving force, the
Achievements and lessons
35