3     Is (early) harmonisation a preferable policy option?

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3.2     Focus on RES-electricity - financial support for RES-E

Looking at the financial side of RES-E support in the period studied, various indicators appear useful to shed light on different aspects. In this brief repetition of key outcomes a focus is set on the resulting cumulative support expenditures, i.e. the sum of direct cost for society / consumer of the underlying policy intervention to facilitate the use of RES. More precisely, cumulative support expenditures (10) for consumers / society include both the cumulative consumer burden in the researched period 2011 to 2020 and the residual costs for the years after 2020.

A comparison of the cumulative support expenditures for new RES-E installations – i.e. the total transfer costs due to the promotion of new installations in the observed period 2011 to 2020 as well as the residual costs after 2020 – is given in Figure 3-2 . This graph illustrates both the cost-efficiency and the effectiveness of RES-E support options – i.e. expressing the cumulative support expenditures per MWh induced RES-E generation.

Figure 3-2: Present value (2011) of cumulative support expenditures for new RES-E installations (2011 to 2020) in the EU-27 for all key cases (national (SNP) and (by 2013) harmonised RES support), expressed per MWh induced RES-E generation

Note: In the case of a TGC scheme, consumer expenditures paid after 2020 are estimated assuming that the average TGC price in the years 2018 to 2020 is constant up to the phase-out of the support

Some key findings derived from Figure 3-2 are:


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(10) Cumulative support expenditures are calculated as follows: The required yearly support expenditures in the period 2011 to 2020 and the estimated residual expenditures for the years after 2020 are translated into their present value in 2010. More precisely, the cumulative cost burden within the researched period is calculated by summing up the present values of the yearly transfer costs explained above. Residual costs refer to RES-E plants installed up to 2020 and their corresponding guaranteed support in the period beyond 2020.