Research Project

Implementation of the EU Renewables Directive against the backdrop of the European energy markets (EUREEM)

Department(s)/ Research Infrastructure
Climate Policy
Project Status
Completed Project
Project Duration
since/from 2013 to 2016
Funded by
Federal Ministry for Economic Affairs and Energy, Funding Number: 03MAP274
Project Manager
Karsten Neuhoff
Project Team/Contacts at DIW Berlin

Project description

The EUREEM project assesses how the refinement and implementation of the EU Renewable Energy Directive can aid the energy transition in Germany. Refinement and implementation needs to take account of complex decision process and the need to account of multiple interests at the European level. Hence, a constructive proposal for the refinement of the directive needs to consider a longer-term perspective as well as a consideration of relevant interests at an early stage. We aim to contribute to analytical foundations for the implementation of the EU internal market on the European level that allow the European Agency for the Cooperation of Energy Regulators (ACER) as well as the European Network of Transmission System Operators for Electricity (ENTSO-E) to include challenges from the integration of renewable energy sources in the development of European Framework Guidelines and Grid Codes.

In the long history of the liberalization of electricity and gas markets early decision have often shaped later developments. This shows that policy options should be analyzed not only with respect to short-term effects, but also long-term impacts. We thus aim to develop the various regulatory and institutional design options as well as participants involved in a future energy system and, building on that, analyze current policy options with regard to both, their short-term effect as well as their contribution to a decarbonization of the energy sector in the long run.

The focus of our work is on the regulatory and institutional framework of the electricity sector, which are designed on the European and national levels in a way as to open up the electricity sector for renewable energy sources and implement the EU directive for renewable energies. We focus especially on

  • short-term markets and mechanisms for the integration of fluctuating renewable energy sources
  • interactions with other markets, especially gas
  • investment conditions for generating capacity
  • the regulatory framework for European grid expansion
  • interactions with other policy fields like EU ETS
  • regional and bilateral dimensions of co-operation