EU Policies and Regulation on CO2, Renewables and Energy Efficiency: A Critical Assessment of Recent Experiences - Green Energy and Efficiency: An Economic Perspective - page 39

Fig. 8 Costs derived from support for renewable energy per unit of electricity consumed versus
share in nal energy consumption Source Status Review of Renewable and Energy Ef ciency
Support Schemes in Europe. Ref: C12-SDE-33-03. 3 December 2012. Revised: 19 February 2013

The analysis carried out in this section points to two main basic conclusions. As
regards the premium and tariff systems, experience shows that although they have
proved effective in attaining the targets set there is no control over the quantities being
installed, and therefore in the case of technologies that evolve quickly bubbles may
develop when levels of support are decoupled from costs. On the other hand, the fact
that it is electricity consumers who for the most part nance support for renewable

energy means that the increase in the roll-out of these technologies has a major impact
on electricity bills and hence on the cost of electricity, making it relatively less
competitive compared to other types of energy (natural gas, fuel-oils, etc.).

Box 2. Lack of control in the installation of solar technologies: the case of
Spain
In Spain the generous tariffs and premiums assured by RD (Royal Decree)
661/2007 for solar technologies encouraged disproportionate growth in the
installation of solar photovoltaic and solar thermoelectric technologies,
meaning that the targets set in the Renewable Energies Plan (and RD 661/
2007) for 2010 were signi cantly exceeded (Figs. 9 , 10 and 11 ).