RECS organizes event to help build multilateral framework for joint renewable energy projects
9 October 2014
A number of recent events have brought further clarity in the development of cross-border renewable energy participation. The ECJ cases of Essent and Alands Vindkraft have clarified the scope for justification of national restrictions for renewable energy support schemes.
A number of EU Member States have however confirmed, in some cases in connection with the application of the 2014 EU Energy and Environmental Aid Guidelines, that they are planning to allow limited cross-border participation in their support schemes in the near future, including Germany and the United Kingdom, on the basis of joint project mechanisms.
The Commission has provided guidance on the structuring of joint project mechanisms, including suggestions for possible bilateral intergovernmental agreements on joint projects.
Project developers interested in renewable energy joint projects are, however, concerned about transaction costs and entry barriers based on individual joint projects agreements and the bankability of the approach and agreements suggested by the Commission.
In response, concept for a multilateral framework has been developed that would amongst other things:
- achieve investment security and bankability
- reduce transaction costs and market entry barriers
- allow participating states the greatest degree of discretion on structuring cross-border support scheme participation
- limit the costs to participating states for implementing and administering joint projects
- limit commercial and liability risk for participating state and achieving an practical, commercial accreditation and implementation through a dual intergovernmental and limited liability company body
The meeting seeks to inform about this multilateral framework and to invite potential project developers and participating states to provide input to this initative or to participate in it.
The event will take place in Vienna, Austria on November 11, 2014.
RECS International members are able to attend the event free of charge by contacting the secretariat