The European Commission issued new guidelines Tuesday
which could end costly and controversial subsidies for renewable energy,
opening the way for state-aid backing of gas or coal-fired electricity
generation projects.
"When the sun is not shining and the wind is not blowing, electricity must still be produced," Oettinger's statement underlined.
To ensure back-up generating capacity, new power plants would be needed, and these could get state backing.
State intervention is potentially harmful to the working of the
market and the new guidelines are meant to prevent that and show member
nations what "best practice" is.
Accordingly, the Commission will now "consider whether to propose
legal instruments" to ensure the new recommendations to member states'
governments are upheld.
The guidelines meet a demand by some member states, including France,
for extra capacity to be provided by "coal and gas power plants which
are flexible enough to be turned on and off whenever needed." [France bans fracking; the French must like coal more than natural gas.]
The Commission said investment costs in renewables have come down and therefore government support can now be tapered off.
It warned that "governments must avoid unannounced or retro-active
scheme changes" while the guidelines also stress that back-up capacity
should meet European-wide needs, not only requirements in national
markets.
The energy story in the EU completely baffles me; yesterday, it was reported that Germany and Sweden generate so much wind/solar energy, they export huge amounts of renewable-generated electricity, but they are still bringing on more coal-fired power plants.
