Servicio de Información Comunitario sobre Investigación y Desarrollo - CORDIS

Defining the costs and potentials of RES-E technologies in an internal EU electricity market

Within the REBUS project a methodology was developed to define the costs and potentials of RES-E technologies in an internal EU electricity market. The methodology supports comparability of costs across EU Member States and provides a sound estimation of the potentials for RES-E that can actually be deployed in the target year. The comparability is especially important when comparing the effects of implementing EU-wide policies for supporting RES-E across Member States.

A uniform, consequent and EU wide accepted method of determining renewable energy potentials and costs is highly recommended.

For the definition of costs a distinction is made between harmonised and non-harmonised costs. The harmonised costs assume the completion of one internal EU electricity market and thus the fact that some cost factors, such as the costs of technology, fuel costs (excluding transportation) and interest rates should be assumed to be equal for market actors in all Member States. The non-harmonised costs are the variable costs of implementing a renewable energy project, which includes all of the cost factors that are by nature different across all countries. The methodology assures a fair comparison of costs across Member States.

The definition of potentials. Available estimations often take into account technical feasibility and market penetration, but do not include problems regarding acceptability or regional planning. For the REBUS-project a methodology has been developed to establish realisable potentials of renewable technologies in which the reducing factors are incorporated. The only barrier left for these technologies is an economic barrier: the moment its cost price (including subsidies or other measures) is competitive a technology will penetrate into the electricity market.

Reported by

ECN - Netherlands Energy Research Foundation
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