In July 2018, European Union legislators set a binding EU-wide energy target for 2030: at least a 32% share of renewables in gross final energy consumption. To meet this target, over 50% of the power generation mix will have to consist of renewable energy. In some countries or regions, the percentage will be even higher.
A variety of EU regulations on renewables, power market design and state aid are in place to improve cross-border cooperation. So far, however, EU countries have collected little practical experience with cross-border renewable collaboration. The few existing initiatives show that cross-border collaboration could make better use of resources and generate renewable energy at a lower cost.
At the same time, choices made by project developers and investors indicate that permitting regimes, grid connection conditions, taxation rules and access to finance are just as important as the availability of resources and the renewable energy support framework.
The problem, of course, is that the regulatory environment differs significantly from country to country. How can cross-border cooperation support an efficient and effective deployment of renewables then? What are the practical consequences for cross-border collaboration? How can the opening of national support schemes work politically and economically meaningful?
To answer these questions, this study quantifies the effects of national policies and regulations on the costs of onshore wind projects for the Pentalateral Energy Forum region (Austria, Belgium, France, Germany, Luxembourg, the Netherlands and Switzerland) and suggests pragmatic steps for addressing differences in the costs of renewable energy projects that result from regulatory and administrative conditions.