Support for Renewables (Communication)

With renewables taking up a growing share of energy production, the European Commission wants support for renewables to be carried out more competitively. For this purpose, feed-in tariffs should be largely replaced by feed-in premiums and quota models. Degressive elements of the support system should mean that overcompensation and distortions of competition are avoided. Support for existing installations should not be changed retrospectively.

cepPolicyBrief

The recommendation that the support for existing installations will not be changed retrospectively is consistent with the ban on retrospective legislation applicable under the Rule of Law and prevents the credibility of the state incentive system from being undermined. The degressive elements of the support systems and the change from state guaranteed feed-in tariffs to feed-in premiums and quota models determined by competitive tenders, mean that overcompensation to plants is limited.