Renewables procurement costs – ECJ to decide on cross border issues in Alands test case

The increasing interconnectivity of the market for the procurement of renewable energy in the EU has thrown up an issue which will need to be resolved before the market can settle into any degree of stability.

There is more detail in the linked article below but, in essence, in dispute (between Sweden and Finland) is the point of principal around the entitlement of a member state to benefit from renewable energy source subsidies provided by another member state.

The Finnish Wind Farm, Oskar, sited on the Alands Islands only has a grid connection to Sweden. Currently, Sweden will not allow Oskar to benefit from Swedish renewables subsidies because those subsidies would ultimately benefit the people of Finland whilst being paid for by the people of Sweden.

Sweden’s position is directly opposed to that of the Commission which wants to see renewables costs shared across borders.

The ECJ will decide…

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