Europe’s electricity regime: restoration or thorough transition

Concerns about climate change, diminishing social acceptance of traditional fuels, and technological innovations have led several countries to pursue energy transition strategies, typically by massive diffusion of renewable electricity supplies. The German ‘Energiewende’ has been successful so far in terms of deploying renewable power, mainly by applying particular feed-in tariffs, and by bundling public, academic, industrial and political support. So far though, only few EU member states proceed with a similar transition. In March 2014 CEOs of Europe’s major energy companies publicly opposed a fast and thorough transformation of electricity supplies to become fully renewable. In April 2014 the European Commission published new state aid guidelines, generally mandating renewable energy support mechanisms (premiums, tenders) of lesser performance than regularly adjusted, specific feed-in tariffs. The new guidelines are likely to be pernicious for the fast deployment of renewable electricity supplies.In light of these challenges, this position paper highlights two implications of power sector transitions. First, the engineering-economics theory of power generation systems needs fundamental revision, mainly since a growing share of power sources no longer function on command. Second, and based on the experience in Germany, the paper sketches out a strategy for a thorough transition of the power sector, which, in the end, also entails normative judgements. Deep changes in energy systems and associated ways of living require societal consensus building based on ethical considerations

The European Experience with Renewable Energy Support Schemes and Their Adoption: Potential Lessons for Other Countries

In the EU since the late 1990s, two schemes for renewable electricity support have competed with each other: feed-in tariffs (FITs) and tradable green certificates (TGCs). After electricity liberalisation began in 1997, the European Commission at first sought harmonisation of support rules and challenged FIT for violating legal provisions; however, it accepted a compromise for the first renewable energy directive of 2001. Focused attention on the results of two schemes produced valuable insights and showed overall better results for FIT. When the Commission returned to support TGC (now called guarantees of origin) harmonisation for the second renewable energy directive adopted in 2009, a coalition of Parliament and Council, strengthened by evidence gained from experience, again replaced the Commission approach by a neutral position. The controversy, its arguments and the insights it produced should be helpful for other countries facing similar policy choices

Windfall profits. Wer betreibt welche Losungen fur die Klimakrise?

Proposals for policy change rarely come from "the people". Most reform proposals are promoted by a variety of actors (affected people or firms, experts, interest groups, bureaucrats, politicians) and are more likely to be discussed by a small policy community rather than by the public at large. Few such proposals make it onto political agendas or government policy. Many face a stony path before being legitimated by parliamentary decisions, often only after surviving one-sided lobbying or corrupt party financing. While many proposals for climate change mitigation receive insufficient promotion to succeed, emission trading policy has gained support from powerful economic players in both national and international arena