Quota system in the case of full harmonisation
Brief characterisation: This policy pathway prescribes the EU-wide adoption of a uniform quota system with tradable green certificates to support RES-E. Since full harmonisation is chosen, only an EU-wide target for RES deployment by 2030 is set and an EU-wide harmonised support scheme (i.e. the quota scheme) aims to provide the necessary financial support to stimulate investments in new RES installations in the electricity sector. |
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Thus, there is a very limited role to be played by the MSs since full harmonisation involves harmonisation of: the detailed design of the support scheme selected, in particular (yearly) quota targets for obliged actors, the height of penalties in the case of non-fulfilment and the legal framework as a whole, including regulatory issues. An EU-wide socialisation of the costs of support for RES-E takes place. Within a quota system this is determined by the height of RES-E targets – i.e. these are in the case of full harmonisation equally set across the EU, and consequently, consumer pay an EU-wide equalised fee per MWh electricity consumed, independent from the actual location of a RES-E plant.
General notes on the design of the uniform quota system:
- A uniform quota system is implemented, meaning that no differentiation of support takes place by technology.
- Quota targets, i.e. the shares of consumed/sold electricity that need to stem from RES-E plants, are defined on a yearly basis for obliged actors.
- Penalties for the case of non-fulfilment of quota obligations are defined.
- Duration of support is limited to 15 years, i.e. a new installation can only receive financial support through certificates during the first 15 years of operation.
Figure 3a - 1. Technology-specific breakdown of RES-E generation from new installations (2021 to 2030) at EU-27 level in the year 2030, indicating deployment in absolute terms (left) and the change compared to reference (right) (for the assessed policy pathway 3a (QUO full))
Figure 3a - 2. Country-specific breakdown of RES and RES-E generation from new installations (2021 to 2030) in the year 2030, indicating RES(-E) deployment as share in corresponding demand (i.e. gross final energy demand for RES total, and gross electricity demand for RES-E) (for the assessed policy pathway 3a (QUO full))
Figure 3a - 3. Indicators on cost/expenditures and benefits of new RES(-E) installations (2021 to 2030), expressing yearly average (2021 to 2030) monetary values at EU-27 level in absolute terms (left) and the change compared to reference (for the assessed policy pathway 3a (QUO full))
Figure 3a - 4. Country-specific breakdown of yearly average (2021 to 2030) capital expenditures in new RES and RES-E installations (2021 to 2030), expressing investments as share of (country-specific) GDP (for the assessed policy pathway 3a (QUO full)
Figure 3a - 5. Country-specific breakdown of yearly average (2021 to 2030) support expenditures for RES total and RES-E, expressing expenditures as share of (country-specific) GDP (for the assessed policy pathway 3a (QUO full))
Figure 3a - 6. Yearly average (2021 to 2030) monetary transfers between Member States related to the support for RES, expressing additional expenditures (+) or income (-) as share of (country-specific) GDP (for the assessed policy pathway 3a (QUO full))
Note: Additional expenditure or income stems from the underlying cost allocation under a full or medium harmonisation of RES support, or they refer to RES cooperation in the case of soft, minimum or no harmonisation, respectively.
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