A pending case between the Commission and Luxembourg relating to state aid for green electricity was denounced by the European Environmental Bureau (EEB) as running contrary to the EU's objective of promoting renewable energies. In a 2001 directive, the EU set itself a target to increase the share of electricity produced from renewable energy to 21% by 2010. However, member states remain free to choose their preferred system to support green electricity.
These are mainly: Feed-in tariffs which oblige grid operators to purchase green electricity at a fixed (higher) price in order to compensate for the difference with the market price, and; quota systems (or 'green certificates') where governments determine a minimum share of power to be produced from renewable sources.
On 25 September, the EEB said that the Commission had warned Luxembourg against its policy to compensate customers for higher-priced green electricity. When customers buy green power from a member state where a different support scheme applies, the measures are said by the Commission to be illegal, according to the EEB.
"The Commission considers the transboundary application [of these measures] to be market distortion," the EEB said, urging the Commission to modify its cross-border state-aid rules.
EEB Secretary-General John Hontelez said that alternative suppliers in Germany such as Greenpeace Energy have been receiving support from Luxembourg, thanks to the scheme.
Subscribe
Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.
Posted on 2nd October 2006
Latest Posts
-
IEMA focus on skills, adaptation and nature-based solutions in CCC report
- 18th July 2024 -
Labour's plan for economic growth must mean green growth – but there is a green skills gap looming
- 5th July 2024 -
As Labour plans to “slash red tape” for economic growth, YouGov poll finds 3 in 5 people want to increase public involvement in planning system
- 28th June 2024 -
Medtronic agrees partnership with IEMA to accelerate skills and standards in sustainability
- 21st June 2024 -
Landmark climate impact ruling for fossil fuel projects, cites IEMA guidance
- 20th June 2024 -
IEMA sets out 18 policy asks for the next Government
- 3rd June 2024