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Emissions trading a crucial tool for promoting renewables

Frontier (Europe) has today published a study for RWE AG on market design for the European power sector and the support mechanisms for promoting renewable energy generation. 

The report, a collaboration with r2b consulting, finds that the European Union Emissions Trading Scheme (EU ETS) should be used as the main instrument for promoting renewable generation.  Although support systems may be necessary in the immediate future in order to avoid major disruptions, they need to be reformed with transitional measures to integrate renewable energies into the European competitive power market.  To minimise distortions to the EU ETS, the study recommends that renewable support schemes be clearly phased out.

 

For more information, please contact Miriam Rau at m.rau@frontier-economics.com or call +49 221 337 131 00.

 

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