1.Renewable energy investments are more capital intensive than investments in fossil-fired power generation. They are also much more sensitive to political and regulatory risks. This is highly relevant when addressing Europe’s 2030 renewables framework consisting of a binding EU target without binding Member States targets.
2.The costs of capital for renewables vary widely between Member States. Perceived ex-ante risks translate into country specific premiums on the costs for renewable energy investments that have nothing to do with technology risks or weather conditions.
3.Equalising costs of capital throughout the EU would save taxpayers at least 34 billion Euros to meet the 2030 renewables target. It would also allow for broader sharing of the social, economic and health benefits of renewable energy investments, and would particularly benefit EU Member States with lower than average per capita GDP.
4.The revised EU Renewable Energy Directive should address differences in cost of capital by establishing an EU Renewable Energy Cost Reduction Facility. This could empower Member States that choose to use the facility to develop their renewable energy sources at costs currently enjoyed for renewable investments in Germany or France.
5.An EU Renewable Energy Cost Reduction Facility would support decarbonisation and help facilitate the common energy
market by broadening the support for renewable energy investments amongst Member States and facilitating the further
convergence of national renewable energy frameworks.