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In 2018, the European Union (EU) adopted a recast of the Renewable Energy Directive (RED), setting the framework for a common EU-wide 2030 target of 32.5% renewables in final energy consumption, for which Member States shall set national contributions. To address the disparities in national targets, the EU introduced three cooperation mechanisms: statistical transfers, joint support schemes, and joint projects. This paper provides an assessment of the utilization of cooperation mechanisms by Member States to meet the 2020 renewable energy target, offering recommendations for the RED III implementation. It analyzes the motivations of both buyer and seller countries, examines the patterns observed in concluded agreements, and interprets the dynamics of the market. The research employs a mixed-methods approach, incorporating a literature review, analysis of official statistics and cooperation agreements, and interviews with government representatives involved in implementing these mechanisms. The study reveals areas for improvement and raises questions about the efficacy of the instruments and their alternatives. To enhance the effectiveness of renewable cooperation mechanisms, a more systemic approach is necessary. The proposed new financing mechanism can ensure certainty in financial allocation and support larger joint projects of European significance. Furthermore, it is anticipated that statistical transfers will continue to be utilized due to established bilateral relationships and the need for last-minute adjustments to achieve renewable energy targets. This research provides valuable insights for policymakers and stakeholders in advancing renewable cooperation mechanisms and driving the EU's progress towards a climate-neutral continent by 2050. [ABSTRACT FROM AUTHOR]

Hydropower contributes to a higher share of renewables but is also in conflict with environmental legislation aiming to protect natural habitats, wildlife and endangered species. Analysing two neighbouring European countries with similar topographical and hydromporphological characteristics, Austria and Slovenia, allows assessing to what extent a policies’ national context steers possible policy conflicts of EU legislation. The paper shows that hydropower expansion in examined countries is strongly shaped by factors such as financial concerns of investors, diverging opinions of involved stakeholders, available hydro potential and the role of hydropower in national energy strategies. Addressing issues that lead to a lower effectiveness of national policies already at the level of EU policy design or engaging countries to broadening their national energy portfolio by considering emerging technologies such as PV and wind will enable future energy and climate strategies that are more consistent with other environmental goals. [ABSTRACT FROM AUTHOR]

The EU directive on renewable energy sources enables EU Member States to import renewable electricity from non-EU countries and count these imports towards their renewable energy targets. This article investigates whether such cooperation can be beneficial for selected Western Balkan countries and help them to increase their domestic renewable electricity supply: could wind power exports to the EU from Bosnia and Herzegovina, Serbia, Albania and the Former Yugoslav Republic (FYR) of Macedonia enable additional investments in domestic generation, without 'selling out' the exporter countries' best generation sites? Or would exports rather conflict with the Western Balkans countries' domestic efforts to reach their renewable energy targets and increase the domestic electricity supply? For this, a model was developed in Visual Basic to optimize, from the exporters' perspective, the optimal export level to trigger investments but maximize the wind power supply for domestic use. The analysis takes into account the wind potential, support and price levels in the EU and Western Balkans, investor requirements and financing conditions in the investigated countries. The article shows that cooperation offers a way both for EU Member States and some Western Balkan countries to expand renewable electricity supply and reach their renewable energy targets in a cost-effective way. Partial exports of wind power would allow Serbia, Albania and the FYR of Macedonia to reach their 2020 wind targets. This would not be possible under their existing support schemes or electricity prices. The results indicate that Bosnia and Herzegovina lacks cost-efficient potentials and cannot achieve its wind target in the base case, with or without exports. Climate policy relevance The results show that wind power cooperation between the EU and Western Balkan countries may simultaneously increase the renewable electricity generation available for the domestic markets in the host countries and help EU Member States to achieve their renewable energy and decarbonization targets. Hence, wind power exports are a way for both the EU and the Western Balkans to provide more carbon-neutral electricity in a cost-effective manner and thus support the achievement of renewable energy and climate targets. [ABSTRACT FROM AUTHOR]

Abstract With the increasing share of renewables in electricity generation in Europe, implied economy-wide macroeconomic feedbacks and spill-over effects to other sectors and actors are of rising importance. We quantify the macroeconomic effects of a large-scale expansion of wind and photovoltaics (PV) in Europe, employing a global multi-regional multi-sectoral computable general equilibrium (CGE) model. We place special emphasis on electricity market integration costs, which have so far been neglected not only in most bottom-up technology comparisons, but also in macroeconomic studies. We find that the societal welfare effects of a large-scale expansion of wind and PV tend to be positive; however, when integration costs are taken into account, positive welfare effects are either much smaller or even become negative, depending very much on regional characteristics, such as the prevailing electricity mix, weighted average costs of capital (WACC) or capacity factors. We also show that macroeconomic feedback effects raise generation costs above what is anticipated from a bottom-up perspective, since the high capital intensities of renewable electricity generation technologies drive up economy-wide capital prices. This may imply that they are no longer competitive when installed at large-scales. Highlights • Integration costs are a crucial factor in large scale variable renewable expansion. • Renewable expansion generally tends to increase societal welfare in EU regions. • Integration costs at high penetration rates can result in negative welfare effects. • De-risking of investment in renewables increases welfare. • Large scale renewable expansion raises capital income at the cost of labor income. [ABSTRACT FROM AUTHOR]