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Contents Business Edition nr 16, December 21, 2005

Renewable heating and cooling Directive in 2006

Commission postpones harmonisation steps until 2007

New dialogue on post-2012 climate policy targets

Extra money for support renewable energy in Ireland

Parliament approves energy efficiency and services Directive

State support renewables in Austria restricted

UK reviews energy policy

Disclosure and double counting

Agenda

State support renewables in Austria restricted  
The Austrian government has agreed with the opposition party SPÖ on a new law on renewable energy. Starting from 2006 an annual state support of €17m is available for new, additional plants. The renewables subsidies will be distributed on a first-come, first-served basis. New providers of renewables will receive full subsidies for ten years. 

So far all new providers could count on state support. They received a 13-year guaranteed feed-in tariff, which is above the market price for electricity. In the future new providers will not be able to have guarantees for state support, and the feed-in tariff is only secured for ten years - plus two further years with gradually reducing tariffs. The mechanism of the old renewables law entailed a substantial cost increase, since many more wind projects were submitted than expected.

The Green Party in Austria reacted sharply against the new law on renewable energy. This party believes Austria will not achieve its EU target of renewables supplying 78% of electricity by 2010. The reaction of the largest industry association in Austria was completely the opposite: the association believes the new law will make support on renewables more efficient. The renewables industry condemned the government for lowering the level of to a fifth of the present level.

 
Source: GP Newsdesk

             
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