It could influence renewable energy policy decisions

Oct 6, 2011 10:55 GMT  ·  By

As the European Union struggles to complete its crisis response mechanism, important figures in the markets of biomass for energy are worried that this situation could also affect renewable energy policy decisions.

As governments focus on the economy, the development of energy policies and subsidies could be shadowed.

Biomass is considered to be the largest renewable resource in use and offers cost effective and sustainable opportunities that can meet the rising energy demand in Europe.

“I am concerned that if we carry on with business as usual in terms of energy consumption in the face of a eurozone crisis, then energy security discussions will be put on the backburner,” joint chairman of the German ethics commission on safe energy supply Klaus Topfer said.

“But on the other hand, I do not think that if the economic situation worsens, then we will close our renewable energy plants and revert back to oil,” he added.

“I think our economic situation can potentially allow us to make progress if we ensure we keep discussions active,” Topfer continued.

According to Argus, Topfer also believes that public education is an important factor in increasing renewable energy in the residential sector.

“If people realise that they can make savings with wood pellets in the heating markets then they will change their attitude and make a difference. There is just not much awareness that there could be savings with pellet boilers,” he concluded.

An average family household in Europe that switched to a pellet boiler in 2004 could have saved €10,000 (about $13,000) compared with using heating oil, according to European Pellet Council chairman Christian Rakos.

“It shows significant savings, but the problem is that coal is still cheaper,” he said. “But the price of coal is rising, and the spread to pellets is reducing.”

The EU aims at increasing the proportion of renewable energy to 20 percent by the year 2020, while at the same time reducing greenhouse gas emissions to 20 percent below 1990 levels. However, according to a researcher at Lund University, Niina Kautto, these targets are a bit far fetched, especially since the planning of biomass usage is poor.