In order for renewable generated electricity to continue to develop, financial support schemes will play a vital role in the coming years. It appears likely that such electricity will continue, at least in the medium term, to cost more to produce than "traditional" sourced electricity.
In 1999, the European Commission adopted a Working Paper containing a detailed analysis and options regarding possible future European Union (EU) action with respect to the progressive creation of a competitive EU-wide internal market for electricity generated from renewable energy sources. The Working Paper suggests that there are two possible options for the creation of such a market. First in the medium term through the operation of the EU Treaty rules on the internal market and state aid rules, or second, pro-actively, in the short-term, through EU legislation, probably via a Directive.