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Tendering system – EU-wide tenders for selected RES-E technologies

Brief characterisation: This policy pathway represents a variant of the reference case of strengthened national support under minimum harmonisation (i.e. with minimum design criteria). EU-wide tenders are used to support investments in new wind (on- and offshore) and centralised solar (large-scale centralised PV systems and CSP) installations. Note that no complementary support is foreseen for these technologies – i.e. the tendering system has to provide a sufficiently high remuneration.

Since national targets for RES by 2030 are in place under this pathway, RES cooperation comes into play that finally affects the overall cost allocation across MSs – i.e. the ultimate height of support expenditures for RES at country level is defined by national RES deployment and the support expenditures related to that, and, on top of that, the additional revenues (for exporting countries) or additional expenditures (for importing countries) related to RES cooperation.

General notes on the design of the EU-wide tendering system for wind and solar:

  • EU-wide tenders are assumed to be in place for new wind and centralised solar systems beyond 2020.
  • RES investors apply for a guaranteed remuneration (i.e. via a fixed purchase agreement, similar to a fixed feed-in tariff system) to cover their expenses.
  • Strategic behaviour is assumed to be partly in place, meaning that investors set their offer prices according to the marginal bid at technology and country level.
  • 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.

Figure 6 - 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 6 (TEN))

Figure 6 - 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 6 (TEN))

Figure 6 - 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 6 (TEN))

Figure 6 - 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 6 (TEN)

Figure 6 - 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 6 (TEN))

Figure 6 - 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 6 (TEN))

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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