Regulatory factors may distort competition in cross-border renewable energy auctions in Europe

Costs stemming from differences in regulation in individual countries have the potential to distort an otherwise competitive level playing field in cross-border renewable energy auctions in Northwestern Europe, writes energy think tank Agora Energiewende*, citing a study by consultancies Ecofys and Eclareon. For example, regulatory factors, such as taxes and financing instruments, frequently play a larger role than wind resource availability in determining the cost of wind power generation, meaning that the cost per megawatt can be much higher in one country than in the neighbouring state. “EU rules currently fail to consider that regulations governing the development of renewable energy projects differ considerably between countries,” said Matthias Buck, director of European Energy Policy at Agora Energiewende.

Find the press release in English here and the study in English here.

For background, read the article Gov advisors say Energiewende will only thrive in European framework.

*Like the Clean Energy Wire, Agora Energiewende is funded by Stiftung Mercator and the European Climate Foundation.