Making the Renewables Market more competitive

Speaker: Hildegard Müller, Member of the Board of Directors, Chairman of the Executive Board of the German Energy and Water Association – BDEW

The ambitious target for 2020 set by the new Directive for Renewable Energy as well as the perspective of de-carbonising the energy system by 2050 both present massive challenges along the whole value chain of our energy systems. The actual national support schemes for renewable energy, well designed to kick-start the renewable energies development in the past, are facing more adjustments to cope especially with cost-effectiveness constraints.

At this stage it is vital to keep in view how the support schemes – still necessary for the foreseeable future – can be optimised to reduce costs. One important aspect would be to introduce market elements, also with the perspective to integrate Renewables gradually in the internal energy market. For instance for the German model, it becomes more and more evident that the actual system is stretched to its limits and that fundamental adjustments are necessary.

At the same time, in the absence of an EU-wide harmonized support scheme, it is crucial to use the existing flexible mechanisms of the Directive in the best possible way for being able to exploit the Renewable Energy potential where it is most economical. How both aspects – market elements and flexible mechanisms – could work hand in hand?

Our sponsor presented the German debate and discussed options for a better market integration of Renewables in order to work towards a truly European Internal Energy Market.