Electricity firms back green power trading

Eurelectric says green certificates better for renewable energy than feed-in subsidies

The EU should create a market in renewable energy "green" certificates and move away from fixed subsidy schemes in promoting renewables, according to the European electricity association, Eurelectric.

In a draft directive on electricity from renewable sources proposed earlier this year, the European Commission said it would wait five years before deciding on a harmonised form of support for renewables. The choice is generally seen to be between tradable green certificates, where power consumers are obliged to buy a percentage of their electricity from renewable generators, and direct subsidy "feed-in" schemes.

Eurelectric says the former is a better way to ensure increased adoption of power plants based on renewables. "An efficient market-based scheme... is more likely to be effective in the medium and long-term in aiding adoption of significant levels of renewable energy," it says.

In a report detailing what is sees as the essential elements of a future scheme, Eurelectric says certificates should be traded across borders and that the market should be big enough to produce sufficient liquidity. Trading could start with just a few member states, it says. Those best prepared for trading are the Netherlands, Italy and Denmark, it adds.

Follow Up:
Eurelectric, tel: +32 2 515 1000, plus a press release and the report "Market mechanisms for supporting renewable energies: {tradable RES certificates}".

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