Supporting the Design and Implementation of The EU Renewables Financing Mechanism

In a report for the European Commission, Guidehouse outlines a framework for the legislation and set up of the mechanism

The EU’s 2030 framework established a binding EU-wide RES target of at least 32% in gross final energy consumption by 2030. This target is not the sum of national binding RES targets, rather it is to be achieved through voluntary contributions of member states, adding up to the EU 2030 target. 

One instrument to support and ensure the target achievement at EU level is the Union Renewable Energy Financing Mechanism. The mechanism is, at its core, a pooled cooperation mechanism whereby member states cooperate not only on a bilateral basis but multilaterally, facilitated by the European Commission. To enable this cooperation, the mechanism implements a renewables auction, spanning across various participating EU member states.

Guidehouse and its subcontractor EY supported the European Commission in the design of the mechanism. Guidehouse developed the general structure of the mechanism and developed principles for the allocation of costs and benefits between EU member states participating in the mechanism. We also created a robust framework for the design of the auctions and the support scheme, and designed a draft roadmap for the practical implementation of the mechanism. We presented results and discussed with representatives from the EU Member States and stakeholders from industry and academia. 

The European Commission received a comprehensive conceptual design of the EU financing mechanism serving as a basis for the drafting of the relevant legislation and setting out the set-up of the mechanism by January 2021.

Recently, Guidehouse was tasked, together with PwC, to support the actual implementation of the EU RES financing mechanism in 2021.

Download the European Commission Report

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