Promoting renewables: which support scheme gets the green light in the, internal market?

The Renewables Directive allows EU Member States, in the advent of a Community framework, to 'experiment' with schemes to support production of renewable electricity. This paper analyses the compatibility of these measures with EC law. Five support schemes are considered: investment aid, feed-in tariffs, tax exemptions or reductions, a tender for renewable electricity, and an obligatory green certificates system. They are analysed on the basis of primary and secondary EC law, European Court of Justice case law and the practice of the European Commission in State aid cases. The main principles found are that (i) domestic and foreign producers must be treated alike, and (ii) that the aggregate result of all support schemes applied does not lead to an overcompensation for the producers of renewable electricity.