In order to achieve the goal of zero carbon dioxide emissions in the power sector as soon as possible, the European Union is developing a plan to unify the subsidy methods for renewable energy in the 27 EU member states.
The promotion of renewable energy in Europe mainly follows two approaches: Germany's feed-in tariff system and the UK's quota system. The former mandates that power companies purchase renewable energy at a fixed price for a certain number of years; the latter mandates that power companies use a certain proportion of renewable energy.
Both approaches have their advantages and disadvantages. However, from the perspective of the European Commission, only by adopting a consistent subsidy approach across the entire EU and abandoning nationalism can the goal of zero CO2 emissions in the electricity sector be achieved by 2050.
EU Energy Commissioner Guenther Oettinger said that Europe needs to establish a common market for electricity, "meaning that the production and consumption of electricity should become more and more common in different countries."
In an interview with the Financial Times Deutschland, he cited examples such as the UK's offshore wind farms, which can store electricity in Switzerland and Norway, and the solar power plants in the North African desert that produce electricity for Europe, which at least initially require subsidies.
Eighteen EU countries use the German-style fixed purchase price system, and Oudiner believes that this system should be extended to the whole of Europe.
However, the level of subsidies involves the distribution of benefits, and setting unified standards by the EU is bound to provoke backlash from governments and businesses in various countries.
O'Dinner assured that the proposed plan "will both promote renewable energy and encourage competition, without scaring away investors," and that "subsidies for already installed equipment will of course remain unchanged."
In early September, Oudiner will meet with energy ministers from EU countries to discuss the possibility of unifying subsidy standards.
–Source: United Daily News
