European Union commitment towards RES market penetration: From the first legislative acts to the publication of the recent guidelines on State aid 2014/2020

Abstract

Abstract During the last three decades, the European Union (EU) commitment towards the Renewable Energy Sources (RES) market penetration has been very complex, involving several aspects pertaining to the economic and political action of Member States. This paper seeks to overview the historical development of the legislative EU framework, including a description of the main financial programmes established and managed by the EU Directorates General. Moreover, the work will proceed with the picture of some Investment Funds, ad hoc created for RES undertakings, and managed by the European Investment Bank (EIB) in collaboration with the EU or other foreign Bank Institutes. The delicate matter of State aid is discussed, paying particular attention to the transition from 1999 to the recent EU Guidelines (2014/2020), as these wider scopes could lead to an effective and well functioning European Energy Single Market. Focusing the attention on three case-studies, we have produced final remarks on the correct functioning of the EU political framework, giving attention to important improvements needed at infrastructural level. The EU awareness of the power grid limits, that are currently recorded in Europe has lead to further reforms of the legislation, as shown by the new EU Guidelines that will probably support Member States in dealing with the infrastructure challenge.