Review article
The promotion of renewable energy sources in the EU member states
Maik Wolf
; Freie Universität Berlin
Abstract
Decentralized systems to promote renewable energy sources in the member states of the European Union have to comply with the provisions on state aid (Article 107 TFEU) and the free movement of goods (Article 34 TFEU). Under certain limited circumstances, the rules on customs duties and taxes (Article 30, 110 TFEU) can be applied as well. According to the jurisdiction of the ECJ, decentralized delivery systems – whereby private market participants are obliged to pay minimum prices – do not constitute state aid in the meaning of Article 107 TFEU. The advantage the producers of renewable energies get is not granted through state resources because no individualized funds are placed under the state's power of disposal. If, however, an intermediate body has been established that directs the allocation of funds in accordance with specific state regulations, the service is sufficiently individualized and these funds can be deemed state resources. In this case it is irrelevant whether the agency is a public or a private entity. Even if a delivery system does not constitute a state aid, it still has to comply with the free movement of goods. Delivery systems that aim to protect the environment may be compatible with the free movement of goods if they do not lead to a disproportionate partitioning of the internal energy market. With the increasing share of renewable energies in a member state's overall energy market, the adequacy and proportionality of delivery systems that only fosters national generation facilities, can become incompatible with the fundamental freedoms of the internal market.
Keywords
renewable energy sources; decentralized systems to promote member states of the European Union state aid (Article 107 TFEU) free movement of goods (Article 34 TFEU)
Hrčak ID:
116372
URI
Publication date:
12.2.2014.
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