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Renewable Energy Road Map by CCRES


CROATIAN CENTER of RENEWABLE ENERGY SOURCES

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Renewable Energy Road Map


Renewable energies in the 21st century: building a more sustainable future
1. INTRODUCTION
The EU and the world are at a cross-roads concerning the future of energy. Climate change,
increasing dependence on oil and other fossil fuels, growing imports, and rising energy costs
are making our societies and economies vulnerable. These challenges call for a
comprehensive and ambitious response.
In the complex picture of energy policy, the renewable energy sector is the one energy sector
which stands out in terms of ability to reduce greenhouse gas emissions and pollution, exploit
local and decentralised energy sources, and stimulate world-class high-tech industries.
The EU has compelling reasons for setting up an enabling framework to promote renewables.
They are largely indigenous, they do not rely on uncertain projections on the future
availability of fuels, and their predominantly decentralised nature makes our societies less
vulnerable. It is thus undisputed that renewable energies constitute a key element of a
sustainable future.
The European Council of March 2006
called for EU leadership on renewable energies and
asked the Commission to produce an analysis on how further to promote renewable energies
over the long term, for example by raising their share of gross inland consumption to 15% by
2015. The European Parliament has by an overwhelming majority called for a 25 % target for
renewable energies in the EU's overall energy consumption by 2020.
This Road Map, an integral part of the Strategic European Energy Review, sets out a longterm vision for renewable energy sources in the EU. It proposes that the EU establish a
mandatory (legally binding) target of 20% for renewable energy's share of energy
consumption in the EU by 2020, explains why it is necessary, and lays down a pathway for
mainstreaming renewables into EU energy policies and markets. It further proposes a new
legislative framework for the promotion and the use of renewable energy in the European
Union. In doing so, it will provide the business community with the long term stability it
needs to make rational investment decisions in the renewable energy sector so as to put the
European Union on track towards a cleaner, more secure and more competitive energy future.
The objectives set out can only be achieved by significantly increasing the contribution from
renewable energy sources in all Member States in electricity and transport and in the heating
and cooling sector. The challenge is huge, but the proposed target can be achieved with
determined and concerted efforts at all levels of government assuming the energy industry
plays its full part in the undertaking.
In particular, the failure to systematically include external costs in market prices gives an
economically unjustified advantage to fossil fuels compared with renewables.
There are other important reasons why the EU will not meet its objectives for renewable
energy. The complexity, novelty and decentralised nature of most renewable energy
applications result in numerous administrative problems. These include unclear and
discouraging authorisation procedures for planning, building and operating systems,
differences in standards and certification and incompatible testing regimes for renewable
energy technologies. There are also many examples of opaque and discriminating rules for
grid access and a general lack of information at all levels including information for suppliers,

customers and installers. All of these factors have contributed to inadequate growth in the
renewable energies sector.
The development recorded so far is made up of generally patchy and highly uneven progress
across the EU, highlighting that national policies have been inadequate for achieving the EU
target. While ambitious policies creating investor certainty have been adopted in some
Member States, national policies have proven vulnerable to changing political priorities. The
absence of legally binding targets for renewable energies at EU level, the relatively weak EU
regulatory framework for the use of renewables in the transport sector, and the complete
absence of a legal framework in the heating and cooling sector, means that progress to a large
extent is the result of the efforts of a few committed Member States. Only in the electricity
sector has substantial progress been made, on the basis of the Directive on renewable
electricity

adopted in 2001, and the targets set will almost be met. The differences in the
regimes for electricity, biofuels and heating and cooling established at EU level are reflected
in the development of the three sectors: clear growth in electricity, the recent start of solid
growth in biofuels, and slow growth rates for heating and cooling

As a further explanation, it should be noted that energy efficiency has not been as high as
expected and that overall energy consumption therefore has been higher than expected. A
considerably bigger contribution from renewable energy sources to reach the 12% target,
which is expressed as a percentage of overall energy consumption (as opposed to a share of
overall energy production) is thus required. Also, the fact that the 12% objective is expressed

as a percentage of primary energy, penalises the contribution of wind energy

, a sector which
has experienced by far the most significant growth during the period in question.
A more detailed account of the situation in the various sectors is set out below.
2.1. Electricity
In accordance with Directive 2001/77/EC, all Member States have adopted national targets for
the proportion of electricity consumption from renewable energy sources. If all Member
States achieve their national targets, 21% of overall electricity consumption in the EU will be
produced from renewable energy sources by 2010.
With current policies and efforts in place, and unless current trends change, the European
Union will probably achieve a figure of 19% by 2010. While this can only be considered a
partial success, the European Union will nonetheless come close to its target for renewable
electricity by 2010. Since the last Commission report two years ago

, renewable electricity
(non-hydro) has increased by 50%

Nine Member States

are now fully on track to reach their target, with some of them reaching
the target early. Wind energy, in particular, has made good progress and has broken through
the target of 40 GW by 2010

five years ahead of schedule. Biomass electricity has gone
from a yearly growth rate of 7% in previous years to 13% in 2003 and 23% in 2005. Biomass
in 2005 contributed 70 TWh, which means a saving of 35 Mt of CO2 and 14.5 Mtoe less fossil
fuel consumption.

Notwithstanding the progress made, this is not the time for self-congratulations. The majority
of Member States are still significantly lagging behind in their efforts to achieve the agreed
targets

.Much more needs to be done .
2.2. Biofuels
Biofuels are the only available large scale substitute for petrol and diesel in transport. Given
the precarious security of supply situation for oil (and thus for the transport sector), in 2003
the EU adopted the biofuels directive (2003/30/EC), with the objective of boosting both the
production and consumption of biofuels in the EU. Since then the Commission has set out a
comprehensive strategy for developing the biofuels sector

.
The biofuels directive established a reference value of a 2% share for biofuels in petrol and
diesel consumptions in 2005 and 5.75% in 2010. This should be compared to their share of
0.5% in 2003. The indicative targets set by Member States for 2005 were less ambitious,
equating to an EU share of 1.4%. The share achieved was even lower, at 1%. Progress was
uneven, with only three Member States

reaching a share of more than 1%. One Member
State, Germany, accounted for two thirds of total EU consumption.
In addition to the cost factor, there are three main reasons for the slow progress. First,
appropriate support systems were not in place in most Member States. Second, fuel suppliers
have been reluctant to use bioethanol (which accounted for only 20% of total biofuel
consumption) because they already have an excess of petrol, and the blending of bioethanol
with petrol makes this worse. Third, the EU regulatory framework for biofuels is
underdeveloped, particularly in relation to the need for Member States to translate their
objectives into action.
Member States are due to adopt national indicative targets for 2010 in 2007. Some have
already done so. Most of these have followed the reference value set in the directive (a 5.75%
share). Nevertheless, taking into account the disparities between the targets that Member
States announced for 2005 and the low shares that many achieved, the 2010 target is unlikely
to be achieved with present policies.
From a trade perspective, the EU maintains significant import protection on some types of
biofuels, notably ethanol which has a tariff protection level of around 45% ad valorem. Import
duties on other biofuels - biodiesel and vegetable oils - are much lower (between 0 and 5%).

If it would appear that supply of sustainable biofuels to the EU is constrained, the EU should
be ready to examine whether further market access would be an option to help the
development of the market

In any event, the key EU trade policy challenge is to find ways to promote those international
exports of biofuels that unambiguously contribute to greenhouse gas reduction and avoid rain
forest destruction. In this respect, complementing the incentive/support system described in
Section 3.5 below, certification schemes elaborated together with exporting trading partners
or producers could be a way forward. But this requires further study and discussion.
2.3. Heating and cooling
The heating and cooling sector accounts for approximately 50% of overall EU final energy
consumption and offers a largely cost-effective potential for using renewable energies,
notably biomass, solar and geothermal energy. However, with renewables today accounting
for less than 10% of the energy consumed for heating and cooling purposes, this potential is
far from being exploited.
The Community has not so far adopted any legislation to promote heating and cooling from
renewable sources. However, the 12% overall target for renewable energy sources set in 1997
created an implicit target for heating and cooling of an increase from approximately 40 Mtoe
in 1997 to 80 Mtoe in 2010
16
Whilst the directive on the promotion of cogeneration (the CHP .
Directive
17
) and the Energy Performance of Buildings Directive
18
promote efficient heating,
renewable energy in heating has grown only slowly. Biomass use dominates renewable
heating consumption and the bulk of this is in domestic wood heating. Little growth has
occurred in the use of efficient wood-burning stoves and boilers, or biomass CHP (for
industrial use), despite their potential for reducing emissions. Several European countries
have promoted other types of renewable heating, with some success. Sweden, Hungary,
France and Germany make the greatest use of geothermal heat in Europe; Hungary and Italy
lead with low-energy geothermal applications. Sweden has the largest number of heat pumps.
Solar thermal energy has taken off in Germany, Greece, Austria and Cyprus. That said,
policies and practices vary widely across the EU. There is no coordinated approach, no
coherent European market for the technologies, and no consistency of support mechanisms.
As a result of the inertia in the heating and cooling sector, even where some of the
technologies are cost competitive, the lack of an appropriate policy including targets and the
inability to remove administrative barriers and provide consumers with information on
available technologies and inadequate distribution channels very little progress has been
achieved in this sector. As a consequence, the contribution that the heating sector should have
provided towards meeting the 12% overall renewable target in 2010 is insufficient.
2.4. Overall progress towards reaching the targets for renewable energy
The 12% target for the contribution from renewables to overall EU energy consumption by
2010 is unlikely to be met. Based on current trends, the EU will not exceed 10% by 2010.
This can only be considered a policy failure and a result of the inability or the unwillingness
to back political declarations by political and economic incentives. Furthermore, the progress
that has been achieved is largely due to efforts made by a relatively small number of Member
States. This is not equitable and risks distorting the functioning of the internal market

The European Union has made most progress in the electricity sector. Here, with policies and
measures currently in place, the European Union will probably achieve a share of 19% in
2010. However, progress has been uneven across the EU, with Member States with a stable
regulatory framework performing best.
In transport biofuels, there has been some progress, particularly since the adoption of the
Directive, but not enough to reach the targets adopted. In the use of renewable energy sources
for heating and cooling there has been hardly any progress since the 1990s.
3. THE WAY FORWARD
For renewables to become the "stepping stone" to reaching the dual objective of increased
security of supply and reduced greenhouse gas emissions, it is clear that a change in the way
in which the EU promotes renewables is needed. Strengthening and expansion of the current
EU regulatory framework is necessary. It is, in particular, important to ensure that all Member
States take the necessary measures to increase the share of renewables in their energy mix.
Industry, Member States, the European Council and the European Parliament have all called
for an increased role for renewable energy sources as stated in the introduction. This section
explores a possible way forward to achieve this.
3.1. The principles
On the basis of the experience gained, a number of key principles for the future renewable
energy policy framework need to be established. With a view to significantly increase the
share of renewable energy sources in the EU's energy mix, the Commission considers that
such a framework should:
– be based on long term mandatory targets and stability of the policy framework,
– include increased flexibility in target setting across sectors,
– be comprehensive, notably encompassing heating and cooling,
– provide for continued efforts to remove unwarranted barriers to renewable energies
deployment,
– take into consideration environmental and social aspects,
– ensure cost-effectiveness of policies, and
– be compatible with the internal energy market.
3.2. An overall EU target
A policy on renewable energies is a cornerstone in the overall EU policy for reducing CO2
emissions. Since the 1990s the EU has taken various measures aimed at promoting renewable
energy, be it in the shape of technology programmes or specific policy initiatives. Policy
measures have been adopted in the form of targets, either in a political context such as the
12% renewables target of 1997, or under sector-specific legislation, such as the biofuels and
renewable electricity Directives, which also provide a set of measures aimed at facilitating the
achievement of the targets set.

In many sectors of the economy, targets are used to provide clarity and stability to industry, to
allow them to plan and invest with a higher degree of certainty. Providing targets at the
European level augments this stabilising impact: EU policy generally has longer time
horizons and avoids the destabilising effects of short term domestic political changes. To be
effective, targets have to be clearly defined, focussed and mandatory. The "12% renewables"
target is a good political target, but has proven insufficient to develop the renewable energy
sector.
The Commission believes that an overall legally binding EU target of 20% of renewable
energy sources in gross inland consumption by 2020 is feasible and desirable. Such a share
would be fully in line with the level of ambition expressed by the European Council and by
the European Parliament.
3.3. A target for biofuels
Biofuels cost more than other forms of renewable energy. But they are currently the only form
of renewable energy which can address the energy challenges of the transport sector,
including its almost complete reliance on oil and the fact that greenhouse gas reductions in
this sector are particularly difficult to obtain. Therefore the Commission proposes to include,
in the new framework, legally binding minimum targets for biofuels. A clear indication of the
future level of these targets is needed now, because manufacturers will soon be building
vehicles that will be on the road in 2020 and will need to run on these fuels.
The minimum target for biofuels for 2020 should, on the basis of conservative assumptions,
related to the availability of sustainably produced feedstocks, car engine and biofuel
production technologies, be fixed at 10%
19
of overall consumption of petrol and diesel in
transport.
To ensure a smooth implementation of this target, the Commission, in parallel, intends to
propose the appropriate modifications to the fuel quality directive (98/70/EC) including the
means of accommodating the share of biofuels.
3.4. National targets and Action Plans; putting policy into practice
Given the largely national basis for support measures in renewable energy, the overall EU
target will need to be reflected in mandatory national targets. The contribution of each
Member State to achieving the Union's target will need to take into account different national
circumstances. Member States should have flexibility to promote the renewable energies most
suitable to their specific potential and priorities. The precise way in which Member States
plan to achieve their targets should be set out in National Action Plans to be notified to the
Commission. These Action Plans should contain sectoral targets and measures consistent with
achieving the agreed overall national targets, demonstrating substantial progress compared to
the agreed 2010 renewable energy targets. In implementing the national targets in practice,
Member States will need to set their own specific objectives for electricity, biofuels and
heating and cooling, which would be verified by the Commission to ensure that the overall
target is being met.

Proposals for legislation on the overall target and the minimum target for biofuels, together
with provisions to facilitate a higher uptake of renewable energies in the three sectors,
including the necessary monitoring mechanisms will be put forward in 2007. This process
should ensure that the overall EU target is met in a fair and equitable manner and should
clearly strengthen the existing political and legal framework

3.5. Promotional policies and flanking measures
In addition to the legislative measures outlined above and their application by Member States,
the Commission will take the following action:
– propose strengthening the legal provisions to remove any unreasonable barrier to the
integration of renewable energy sources in the EU energy system. Conditions for grid
connections and extensions must be simplified. Some Member States have a panoply of
permission procedures to be complied with in order to construct renewable energy systems.
This must be reduced. Building codes normally ignore renewable energies. Red tape for
innovative small and medium-sized enterprises must be eliminated. To this effect, the
Commission will continue to stringently apply the Renewable Electricity Directive;
– propose legislation to address the barriers to growth in the use of renewable energies in the
heating and cooling sector including administrative obstacles, inadequate distribution
channels, inappropriate building codes and lack of market information;
– take further action to improve the functioning of the internal electricity market considering
the development of renewable energies. Improved transparency, unbundling, higher interconnectors capacity, all improve the opportunity for new innovative renewable energy
players to enter the market;
– re-examine, in 2007, the situation concerning Member States' support systems for
renewable energies with a view to assessing their performance and the need to propose
harmonising support schemes for renewables in the context of the EU internal electricity
market. While national schemes for renewable energy in electricity may still be needed for
a transitional period until the internal market is fully operational, harmonised support
schemes should be the long term objective;
– promote a proposal for an incentive/support system for biofuels that, for instance,
discourages the conversion of land with high biodiversity value for the purpose of
cultivating biofuel feedstocks; discourages the use of bad systems for biofuel production;
and encourages the use of second-generation production processes;
– continue to promote the use of renewable energy sources in public procurement for
fostering clean energies, in particular with regard to transport;
– continue to pursue a balanced approach in ongoing free trade negotiations with ethanolproduced countries/regions, respecting the interests of domestic producers and EU trading
partners, within the context of rising demand for biofuels;
– continue to co-operate closely with grid authorities, European electricity regulators and
renewable industry to enable a better integration of renewable energy sources into the
power grid, with particular attention paid to the special requirements related to much
larger deployment of off-shore wind energy, notably as regards cross-border grid
connections. Opportunities provided by the TEN-E scheme should be examined and work
on a European offshore super-grid should be initiated;
– exploit fully the possibilities offered by the Community’s financial instruments – notably
the Structural and Cohesion funds, the Rural Development funds, and the financial support

made available through the Community’s international co-operation programmes to
support the development of renewable energy sources in the EU and beyond;
– continue to promote the exchange of best practices on renewable energy sources, using
different information and debate platforms, such as the existing Amsterdam Forum
21
In .
the context of the Commission initiative on Regions for Economic Change, the
Commission will also establish networks of regions and cities to boost the sharing of best
practices for sustainable energy use;
– continue to internalise external costs of conventional fossil energy (inter alia by means of
energy taxation);
– reap all the opportunities offered for renewable energy by the result-oriented actions of the
forthcoming European Strategic Energy Technology Plan (SET-Plan);
– promote the use of renewable energy sources in its external energy policies
22
and favour
opportunities for sustainable development in developing countries;
– fully implement the Biomass Action Plan adopted by the Commission in December 2005
23
.
Biomass offers great potential and major benefits in other Community policies;
– continue to use the Intelligent Energy for Europe programme to help bridge the gap
between successful demonstration of innovative technologies and effective market entrance
to achieve mass deployment and to boost large-scale investment across the EU in new and
best performing technologies and to ensure that renewable energy is given the highest
priority in the sustained efforts to maximise the use of the EU research and technology
development programmes in support of zero- or low carbon energy technologies whilst
developing synergies with Member States involved in similar development.
In addition to these Commission initiatives, it should be underlined that Member States,
regional and local authorities have to make a significant contribution towards increasing the
use of renewables. Currently, Member States use various policy tools to promote renewables,
including feed-in tariffs, premium systems, green certificates, tax exemptions, obligations on
fuel suppliers, public procurement policy and research technology and development. To make
progress towards the proposed new targets, Member States will have to make further use of
the range of policy instruments at their disposal, in compliance with the provisions of the EC
Treaty.
Member States and/or local and regional authorities are in particular called upon to:
– ensure that authorisation procedures are simple, rapid and fair with clear guidelines for
authorisation including as appropriate, appointing one-stop authorisation agencies
responsible for coordinating administrative procedures related to renewable energy
sources

– improve pre-planning mechanisms whereby regions and municipalities are required to
assign suitable locations for renewable energies;
– integrate renewable energies in regional and local plans.
4. ASSESSMENT OF THE IMPACT OF ACHIEVING THE TARGET FOR RENEWABLES
The impact assessment, which accompanies this Road Map, provides a detailed account of the
various impacts of the measures set out above and compares the impacts of various alternative
policy options.
This section of the Road Map provides a brief overview of the findings.
4.1. Impact on greenhouse gas emissions and other environmental impacts
The importance of climate change has never been greater. The Environment Council of 10
March 2005 concluded that "reduction pathways by the group of developed countries in the
order of 15-30% by 2020 compared to the 1990 baseline envisaged in the Kyoto Protocol
should be considered."
Greenhouse gas emissions, including CO2 emissions, from renewable energy sources are
either low or zero. Increasing the share of renewables in the EU fuel mix will therefore result
in significantly lower greenhouse gas emissions. The additional renewable energy deployment
needed to achieve the 20% target will reduce annual CO2 emissions in a range of 600-900 Mt
in 2020
24
Considering a CO2-price of 25 €/per tonne .
25
, the additional total CO2 benefit can be
calculated at a range of €150-€200 billion. Actual CO2 prices will depend on the future
international climate regime. The breakdown of the CO2 emissions avoided is set out in the
annex.
Replacing fossil fuels also has generally positive air quality benefits. These are especially
positive in the electricity sector.
4.2. Security of energy supply
Renewable energy contributes to security of supply by increasing the share of domestically
produced energy, diversifying the fuel mix, diversifying the sources of energy imports and
increasing the proportion of energy obtained from politically stable regions. The EU will
strengthen its position on all these measures of security of supply if it achieves the proposed
share of renewable energy. Benefits are seen in all sectors and are particularly marked in
transport. One way to sum up the benefits is to look at the quantity of fossil fuels displaced by
renewable energies. Assuming the EU achieved 20% deployment of renewables, the annual
reduction in fossil fuel demand can be calculated to be 252 Mtoe from 2020 onwards. This
figure is equivalent to the total combined energy consumption of the UK, Latvia and
Lithuania. About 200 Mtoe of this saving would come from imports, including 55 Mtoe of oil
and 90 Mtoe of gas, predominantly from the Middle East and CIS countries.

4.3. Cost and competitiveness
In contrast to conventional energy sources, there has been a continued and significant
reduction in the cost for renewables over the last 20 years. As an example, the cost of wind
energy per kWh has fallen by 50% over the last 15 years while at the same time the size of the
turbines has increased by a factor of 10. Solar photovoltaic systems today are more than 60%
cheaper than they were in 1990.
Despite this, as stated in Section 2, the cost of renewable energies varies significantly
according to the resource base and the technologies concerned, but generally still exceeds that
of conventional energy sources at present

Energy market price signals remain distorted in favour of non-renewable energy sources
27
, in
particular due to the continued failure to systematically internalise external costs. Although
external costs are partially internalised through the EU's Emission Trading System, fiscal
instruments or support frameworks for renewable energy sources, current market prices are
still far from reflecting true cost. Figure 5
28
below illustrates how many renewable energy
technologies would be more able to compete with conventional fuels if external costs were
reflected in prices.

Reaching the target for renewable energy in the EU by 2020 will entail additional cost. The
size of this will depend on the finance mix, the technology choices made and the degree of
competition in the sector. Above all, however, the cost will depend on international prices for
conventional energy sources, notably oil. The annual additional cost of increasing the
contribution of renewables to the proposed share by 2020 is defined as the total costs of
generation of renewable minus the reference cost of conventional energy production. A
balanced mix of renewable technologies, combined with low international oil prices ($48),
will result in an additional average annual cost of achieving the proposed share of renewable
energy of approximately €18 billion
29
Strong research and development efforts will certainly .
lower the costs of renewable energies and thus the overall cost of this policy. The exact choice
of the technologies
30
could reduce this average cost by approximately €2 billion per year.

Marginal costs of renewable energies are often low compared to conventional energy sources,
and therefore a gradual increase in renewable energies in the wholesale electricity market will
reduce the wholesale market prices of electricity
33
The net effect on power costs to .
consumers is thus constituted of two counteracting effects. For the electricity sector, based on
the assumption of a reference spot price of €48.6 per MWh for electricity, consumer
electricity prices could be 5% higher due to the extra investment in renewable energy.
Whether or not energy efficiency measures are applied is also of key importance and the
range cited above assumes energy efficiency policies. Without these, the average annual
additional cost would increase by more than €7 billion annually. Full details of the cost
analysis can be found in the impact assessment report.
The European Council in March 2006 decided to refocus the Lisbon Strategy
34
on jobs and
growth
35
The renewable energy sector in the EU has achieved global leadership and has a .
turnover of €20 billion and employs 300 000 people
36
In order to maintain this role, the EU .
needs to continue to expand the deployment of renewable energy technologies in the EU.
Studies vary in their estimates of the GDP impact of increasing the use of renewable energy,
some suggesting a small increase (of the order of 0.5%), and others a small decrease. Studies
also suggest that support for renewable energy will lead to a small net increase in
employment. Much of the economic activity generated by support for renewable energy is
located in agricultural areas, often in peripheral regions.
Further business opportunities will arise from the export of renewable energy technology.
Traditionally the EU wind industry has held a position as the global market leader. It currently
holds a 60% world market share. Other renewable technologies are currently experiencing
spectacular growth, for example, solar thermal appliances, for which the Chinese market has
taken off and currently accounts for more than 50% of global solar thermal installations. Of
the employment created in Germany by the wind energy sector – evaluated at 60 000 full time
jobs –half is due to the export market.
With a strong renewable energy strategy the EU would be well placed to maintain its leading
role in renewable energy research, and would benefit from increased opportunities for
renewable energy technology exports

5. CONCLUSION
With this Road Map the Commission sets out an important part of its strategic vision for the
energy future of Europe. It seeks to significantly accelerate the growth in renewable energy,
and proposes that the EU achieve a contribution of 20% of its energy mix from renewable
energy sources by 2020. The Commission requests the Spring Council and the European
Parliament to endorse this target. This will require a substantial strengthening of the EU
regulatory framework. Most importantly, the Commission is convinced that a legally binding
target for the overall contribution of renewables to the EU's energy mix plus mandatory
minimum targets for biofuels are now called for. This policy will be a major step along the
road to sustainability.
Reaching this target is technically and economically feasible. Additional average costs
compared to conventional supply options will depend on future innovation rates and
conventional energy prices and would range between €10.6 to €18 billion per year. The
additional renewable energy deployment needed to achieve the 20% target will reduce annual
CO2 emission by approximately 700 Mt in 2020. The value of this significant reduction in
greenhouse gas emissions would nearly cover the total additional cost under high energy
prices. At the same time the EU will strengthen its position on security of supply reducing
fossil fuel demand by over 250 Mtoe in 2020. Until this new legislation enters into force, the
current legislative framework, notably for electricity and biofuels, will be vigorously
enforced.
No-one can predict oil prices or gas prices over a 20 years period, but it would be imprudent
not to start investing to reduce the uncertainties of the EU's energy future. To put the
principles and proposals set out in this Road Map into practice, it will be followed by
proposals for new legislation in 2007. New legislation will build on and strengthen the
existing legislative framework for the post 2010 period. Member States should engage in a
process to share the overall target in a fair and equitable manner, taking into account national
circumstances and choices, while at the same time indicating the way in which they intend to
make progress in all three sectors in accordance with the agreed target.
This policy aims to create a true internal market in which renewable technologies can thrive.
It will provide the business community with the certainty and stability it needs to make its
investment decisions while at the same time give Member States the flexibility they need to
support this policy in line with their national circumstances.
The Road Map builds on the reputation and the leading role the EU renewable energy industry
sector holds in the world. The objective is to confirm the EU as a world leader in this sector.
In view of increased global competition and the fact that other key players are putting in place
vigorous promotional policies on renewables, meeting this objective involves significant
challenges for Europe. Failing to rise to this challenge, through inaction or lack of vision,
would seriously endanger our leadership in this field, the importance of which reaches far
beyond the energy sector.
Most importantly, this Road Map provides EU citizens with the assurance they seek from
their policy makers: that the serious problems of climate change and environmental
degradation and of security of supply are being given equally serious answers.

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE
EUROPEAN PARLIAMEN

CROATIAN CENTER of RENEWABLE ENERGY SOURCES ( CCRES )


CROATIAN CENTER of RENEWABLE ENERGY SOURCES (CCRES)• was founded in 1988 as the non-profit European Association for Renewable Energy that conducts its work independently of political parties, institutions, commercial enterprises and interest groups, • is dedicated to the cause of completely substituting for nuclear and fossil energy through renewable energy, • regards solar energy supply as essential to preserve the natural resources and a prerequisite for a sustainable economy,• acts to change conventional political priorities and common infrastructures in favor of renewable energy, from the local to the international level, • brings together expertise from the fields of politics, economy, science, and culture to promote the entry of solar energy, • provides the opportunity to play a part in the sociocultural movement for renewable energy by joining the association for everyone, • considers full renewable energy supply a momentous and visionary goal - the challenge of the century to humanity.

CCRES
Željko Serdar
Head of association
solarserdar@gmail.com

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