The European Dimension of National Renewable Electricity Policy Making - An analysis of the Dutch experience

Last year’s adoption of the Renewables Directive has provided an important stimulus for EU Member State governments to increase their renewable energy policy efforts, stipulating indicative targets for the consumption of renewable electricity in each of the Member States. This paper uses the recent experiences in the Dutch green certificate market to illustrate the possible interactions between renewable electricity policy instruments in the different Member States. These interactions may reduce the effectiveness and efficiency of renewable electricity policy and should therefore be taken into account when designing policy instruments. The paper first describes the Dutch green certificate system and renewable support mechanism, as well as the recent developments in the Dutch green certificate market. Consequently, the paper analyses the current problems of the Dutch renewable electricity support framework and explains the interactions with renewable electricity policies in other Member States. Based on the implications of these policy interactions for national renewable electricity policy making the case for co-ordination and harmonisation of renewable energy policy in the EU is developed. The paper elaborates different levels of harmonisation that may be necessary as the internal market for renewable electricity develops. The paper concludes with a set of recommendations at the EU level with regard to a strategy for the harmonisation of the European renewable electricity market.