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Last updated: 25 February 2003

Added impetus for PV in Europe The EU ratification of the Kyoto Protocol and the internal ‘Green Energy’ Directive – targeting the production of 22 % of electricity from renewable energy sources by 2010 – are significant drivers for development of RE projects throughout the EU. Wind, bioenergy and hydropower will be critical for achieving these targets,but a growing number of countries are now responding to these commitments by increasing applications of PV as well.

Finland

Within the Finnish National Climate Strategy to address Kyoto protocol commitments, concrete goals for PV are established under the national ‘Action Plan for Renewable Energy Sources’. The Plan, which was launched in 1999 aims for 40 MW of PV to be installed by 2010, with a prognosis of 500 MW by 2025. A series of actions to enable the ambitious goals to be achieved has recently been defined, including preparation of a national roadmap. The main emphasis is on PV in buildings, though stand-alone systems and support for Developing Countries are also addressed.
Subsidies of up to 30 % of investment costs have been available for community and commercial PV installations on new buildings for a number of years, but this is likely to be extended to private individuals in the near future and the subsidy ceiling raised to 40 %, the same as is available for wind energy investments.

France

In addition to the subsidy and tax exemption measures that have resulted in approximately 14 MW of PV installed off-grid in mainland France and the French Overseas Departements since 1992, a new five year dissemination project for building integrated, grid-connected systems (BIPV) has recently been launched. The initiative aims to install 20 MW of BIPV by 2006, through a subsidy of up to 80 % combined with a rate-based incentive.
Roof-integrated systems of 1-10 kW, or larger-scale building systems of up to 100 kW are eligible for a maximum subsidy of 4,6 EUR/W within France or 6,1 EUR/W in the overseas Departements. The French Ministry of Industry has further recommended a 0,15 EUR/kWh preferential buyback tariff be applied in metropolitan France and 0,30 EUR/kWh in the dependencies.

Portugal

Under the EU Directive, Portugal has to aim to deliver 39 % of its electricity from renewables by 2010. In common with its neighbour, Spain, wind will form the bulk of the new installed power (3 000 MW) over the next 8 years. But within the ‘E4’ programme (Energy Efficiency and Endogenous Energies), launched in 2001, PV’s contribution is set to increase from the current level of about 1 MW to 51 MW by the 2010 deadline. Recently revised legislation has established a range of favourable feeding tariffs to maintain development of well established technologies like wind and small hydro and support introduction of new ones such as PV, biomass and wave power. For PV the new buy-back rates of 0,28 EUR/kWh (systems over 5 kW) and 0,50 EUR/kWh (systems under 5 kW) make PV investments considerably more attractive than the former tariff (0,06 EUR/kWh). Grants in the range of 20 % to 40 % of the total eligible costs for renewables and energy efficiency projects are also available. The level of support is assessed on the basis of energy and environmental value.

United Kingdom

An engineer completes installation of the first domestic systems approved for funding under the UK’s MDP. [Photo: Solar Century] The UK has seen a step change in PV activity thanks to a series of demonstration ‘Field Trials’ in the residential and large-scale building sectors and the launch of the Major Demonstration Programme’ (PV MDP) in May. The first phase of the MDP has a budget of 20 million GPB (30 million USD) over three years which is expected to result in a ten-fold increase in the number of domestic PV installations in the UK by 2005. Maximum assistance of 50 % of installed costs is available on systems in the range of 1-5 kW for homeowners and small/medium enterprises, while public sector and commercial customers can apply for 65 % and 40 % respectively on systems up to 100 kW. Currently funding is restricted to grid-connected systems.
A requirement of the scheme is that both modules and inverters be ‘approved’; likewise installations must be undertaken by accredited installers.

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