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Feed-in Tariff system in the case of full harmonisation

Brief characterisation: This policy pathway prescribes the EU-wide adoption of a system of fixed feed-in tariffs 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 fixed feed-in tariff scheme) aims to provide the necessary financial support to stimulate investments in new RES installations in the electricity sector.

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, including the level of support by technology, and the legal framework as a whole, including regulatory issues. An EU-wide socialisation of the costs of support for RES-E takes place whereby the assumption is taken that 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 feed-in tariff system:
  • A system of fixed feed-in tariffs is implemented. A new installation consequently receives the guaranteed remuneration for its electricity feed-in during the whole duration of support whereby also an inflation adaptation is assumed.
  • Support levels (i.e. tariffs) differ by technology. Moreover, for wind onshore and PV a “stepped design” is implemented, meaning that within an efficiency corridor support levels reflect site specifics and a higher remuneration is offered to plants at less suitable sites (i.e. lower full load hours) than for plants at best sites whereby care is taken to assure that revenues remain higher to let investor’s strive for best sites.
  • Duration of support is limited to 15 years, i.e. a new installation can only receive financial support during the first 15 years of operation.
  • An automatic digression of support levels is foreseen, meaning that in accordance with learning expectations a lower support is guaranteed for a new installation in a certain year than in one year before.

Figure 1a - 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 1a (FIT full))

Figure 1a - 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 1a (FIT full))

Figure 1a - 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 1a (FIT full))

Figure 1a - 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 1a (FIT full)

Figure 1a - 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 1a (FIT full))

Figure 1a - 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 1a (FIT 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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General contact for more infomation: resch@eeg.tuwien.ac.at
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