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Effectiveness of financial support in European Union countries in terms of bioenergy : differences between Germany, Poland and Spain

Febrúar 2009

In light of increasing energy insecurity, in which countries try to obtain their own,
independent resources, the need for yearly financial support is increasing. Countries
continue to search for new renewable energy possibilities and successfully implement new,
not yet well-known technologies. However, these expensive technologies will never be
able to succeed without support since the market for current renewable energy and
feedstock prices are still not competitive with the fossil fuel market.
The aim of this project is to show the possibilities of financial vehicles, which are still in
the development phase, for European countries. Special attention is given to the bioenergy
sector, which is considered to have the highest potential to replace primary energy sources.
The study is based on the examples of three countries: Germany, as a leader of renewable
energy development not only in Europe but also throughout the world; Spain, which in
recent years significantly increased its share of renewable resources in final energy
consumption; and Poland, as a country in transition with high bioenergy potential.
The study shows the variety of financial possibilities, in form of supports or funds, that
have recently emerged. However, the problem lies with individual government
implementation effectiveness. All considered countries showed an increase in installed
bioenergy capacities, mainly because of benefits provided through financial supports.
Unfortunately, in most cases the results are not sufficient.
The problem is that a lack of consistent data concerning subsidies for different fuels across
EU 271 was an obstacle in reaching more defined conclusions. However, the analysis of the
chosen countries concluded that feed-in tariffs are far ahead in terms of effectiveness and
influence on technological development as compared to quota obligations.
Future studies of this topic will most likely implement new solutions which will lead to a
more clear understanding of the procedures and will mainly focus on Member States policy
papers and legislations.
1 EU


RES Master´s Thesis
Verkefnið er unnið í tengslum við Háskóla Íslands og Háskólann á Akureyri


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