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The renewable energy framework indicator provides an annual assessment of the framework conditions for PV and wind energy onshore deployment on Member State level.

It aims to serve as a transparent tool to monitor the political and regulatory framework conditions for the diffusion of these two major RE technologies in the EU Member States.

The indicator applies a proven methodology (see [insert reference]) to provide standardized assessments for each Member State which helps to analyse and compare the boundary conditions for renewable energy deployment and to identify barriers and policy gaps as well as best practices.  

The indicator consists of 4 major categories which are structured into 16 sub-categories that draw upon 30 individual indicators (see box below for details).

The indicators cover a broad range of political, regulatory, economic and non-economic determinants framing RE diffusion in order to reflect the whole range of decision-making criteria of potential RE project developers and investors.

To construct the overall renewable energy framework indicator score:

  • Each of the 30 individual indicator values is normalized to a numeric value ranging between 0 and 1.
  • Where required (i.e. for sub-categories with >1 indicator) the individual indicator values per sub-category are aggregated (averaged).
  • Each of the 16 sub-category value is weighted according to its relevance for the RE diffusion process.
  • The applied weighting factors are empirically-based values generated through a large-scale survey among RE-experts (see [insert reference]).
  • The overall indicator value is obtained by multiplying the 16 weighted sub-category values (multiplicative aggregation). This approach takes account of the impact of blocking factors, i.e. a score of zero for one category leads to an overall indicator score of zero. 

 Structure of the Renewable Energy Framework indicator 

  • A - Political and economic framework
    • A-I Existence and reliability of RES-E strategy and -support scheme
      • General RES-E target
      • Liability of RES-E target
      • Technology specification of RES-E target
      • Maximum time frame of RES-E targets
      • Type of RES-E support scheme
      • Mechanism for adjustments or changes of the RES-E support level
      • Frequency of drastic RES-E support scheme changes
      • General policy stability
    • A-II Relative remuneration level for RES-E (average income under the given resource conditions & technical performance parameters)
    • A-III RE revenue risk (depending on the RES-E support scheme design)
    • A-IV Access to finance
      • National credit rating (Standard & Poor rating)
      • Interest rates for long-term government bonds (EUROSTAT)
      • Ease of obtaining credit (availability of credit information & legal strength in the finance sector)
      • Availability of financing specifically for RES-E projects
  • B - Electricity market structure and market regulation
    • B-I Fair and independent regulation of the electricity sector
      • Unbundling of generation, transmission and distribution of electricity
      • Existence and empowerment of regulatory authority
      • Level of IPP access to the electricity market
      • Possibilities for distributed electricity generation and own consumption
    • B-II Existence of functioning and non-discriminatory markets
      • Liquidity of power exchange (share of electricity consumption traded at intra-day market)
      • Gate closure times (last bid ahead of delivery in intraday market)
    • B-III Availability of reliable long-term contracts (PPA) for RES-E
  • C - Grid infrastructure and grid regulation
    • C-I Grid connection cost (charging-/ grid reinforcement approach for access to distribution and transmission grids)
    • C-II Duration of RES-E grid connection procedure
    • C-III Predictability and transparency of grid connection procedure
    • C-IV RES-E access regime and regulation for curtailment of RES-E
    • C-V Transparency and predictability of grid infrastructure development
  • D - Administrative procedures for RE projects
    • D-I Cost of administrative process
    • D-II Duration of administrative procedures
    • D-III Administrative complexity
    • D-IV Integration of RES-E in spatial and environmental planning and prioritization of areas for RES-E development in national spatial plans