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Quota system in the case of medium harmonisation

Brief characterisation: This policy pathway prescribes the EU-wide adoption of a quota system to support RES-E. Since medium 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 system scheme) aims to provide the necessary basic support which MSs may complement via additional limited incentives to stimulate investments in new RES-E installations.

Thus, there is a very limited role to be played by the MSs since medium harmonisation involves harmonisation of: the detailed design of the support scheme selected, including the level of basic support by technology, and the legal framework as a whole, including regulatory issues. Medium harmonisation gives MSs however the freedom to apply limited additional support (i.e. via investment incentives) to complement the revenues gained through the EU-wide harmonised trading regime. An EU-wide socialisation of the costs related to the EU-wide trading regime takes place whereby the assumption is taken that consumer pay an EU-wide equalised fee per MWh electricity consumed.

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 3b - 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 3b (QUO medium))

Figure 3b - 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 3b (QUO medium))

Figure 3b - 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 3b (QUO medium))

Figure 3b - 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 3b (QUO medium)

Figure 3b - 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 3b (QUO medium))

Figure 3b - 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 3b (QUO medium))

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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General contact for more infomation: resch@eeg.tuwien.ac.at
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