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Topic Title: EU Commission: Guidance for state intervention in electricity
Topic Summary: The policy signals from Europe are changing in regards to energy subsidies
Created On: 05 November 2013 06:09 PM
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 05 November 2013 06:09 PM
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The terms of the debate on renewables subsidies is starting to change.

see here

"Why this communication?

Renewable energy - both wind and solar - was for a long time a new technology that needed state intervention to develop. With technological progress, investment costs in solar panel falling and production expanding, many Member States have started a reform of their support schemes for renewables. The Communication gives guidance on how best to reform existing national support schemes for renewable energy.

At the same time, it looks at back-up capacities for renewable energy: When the sun is not shining and the wind is not blowing, electricity must still be produced in sufficient quantities to deliver energy to consumers and keep the electricity grid stable. With the increase of renewable energy production, this becomes a challenge. It is for this reason that in several Member States, discussions take place on how to organize and finance back-up-capacities, for example coal and gas power plants which are flexible enough to be turned on and off whenever needed.

The Communication gives guidance on how these back-up capacities can be designed in a cost-efficient way and takes full advantage of the European market."

The important paragraph in terms of nuclear electricity generation subsidies is the last one

"How do your guidelines correspond to the envisaged state aid guidelines for energy and environment?

The Communication and the staff working documents provide broader policy considerations on several pressing questions which involve public interventions in general, though not necessarily amounting to state aid. In addition, the Commission will soon launch a public consultation on the energy and environmental aid guidelines which will provide a framework for assessing the compatibility of measures involving state aid with precise criteria for assessment under state aid rules. Both papers have been aligned to each other and are based on the idea that public interventions should, whenever possible, be more market-based, more open to cross-border solutions and allow for more competition between supported technologies."

This press release is worth reading and perhaps commenting on even though what is published today is not legally binding. However it does reflect the thinking at the EU level and is worth thinking about and responding to.

James Arathoon

James Arathoon
 06 November 2013 05:51 PM
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A good idea from Spain, don't reduce the excessive feed in tariff for PV installations keep your word but tax the earnings, hope it will catch on here give the tax income money back to the fuel poor and pensioners.

The new tax would extend the average time it would take for solar panels to pay for themselves from eight to 25 years, according to the solar lobby.

At the same time it has not endorsed net metering, a policy allowing solar panel owners to send surplus energy to the grid and use it later. The idea was part of a previous proposal but was not included in the latest reform proposal. (Gosh, how would that have worked and what rate would they buy back their own electricity)

 07 November 2013 08:58 AM
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My first reaction is that the EU commission should keep their nose out of British affairs. But since it seems the LibLabCon already gave up all control of UK energy and environmental policy to these unelected unaccountable EU bureaucrats, I guess we should pay attention to their latest irrational outburst. No doubt whatever idiotic demands the eco-loon infested EU commission make, the Westminster EU branch office will gold plate them into British law - making them even more damaging to our people - just like Cameron's idiotic 'carbon floor price' which looks set to make British businesses even less competitive than their EU competitors.

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