Investor certainty is crucial for reaching the EU 20% Renewables Target

The European Wind Energy Association (EWEA) today published its position paper on the forthcoming legislation for renewable energy. The wind industry is also formulating 20 questions that need to be addressed prior to proposing “virtual trade”, as currently debated.

Legislative uncertainty is by far the most dangerous enemy for a growing industry such as the wind energy sector. Any shift from the current successful situation must be well prepared in order to maintain investor confidence and the current speed of development. Therefore, EWEA strongly recommends that the creation of a truly competitive Internal Energy Market should precede the establishment of a single trading mechanism for renewable electricity in Europe rather than following it.

EWEA fears that “virtual trading”, as currently debated, would lead Member States to engage in strategic gaming exercises where Member States would frequently adjust their national frameworks to ensure that their support system is attractive enough to maintain domestic action (CO2 reductions, employment, economic activity) while avoiding catching the attention of foreign exporters. Such frequent adjustments would increase the risk dramatically compared to the present framework and would certainly not be a cost effective solution.

See full Press Release.