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

Abstract

In light of increasing energy insecurity, in which countries try to obtain their own,independent resources, the need for yearly financial support is increasing. Countriescontinue to search for new renewable energy possibilities and successfully implement new,not yet well-known technologies. However, these expensive technologies will never beable to succeed without support since the market for current renewable energy andfeedstock 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 inthe development phase, for European countries. Special attention is given to the bioenergysector, 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 renewableenergy development not only in Europe but also throughout the world; Spain, which inrecent years significantly increased its share of renewable resources in final energyconsumption; 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, thathave recently emerged. However, the problem lies with individual governmentimplementation effectiveness. All considered countries showed an increase in installedbioenergy 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 acrossEU 271 was an obstacle in reaching more defined conclusions. However, the analysis of thechosen countries concluded that feed-in tariffs are far ahead in terms of effectiveness andinfluence on technological development as compared to quota obligations.Future studies of this topic will most likely implement new solutions which will lead to amore clear understanding of the procedures and will mainly focus on Member States policypapers and legislations.1 EU