This case study is hypothetical, it does not present Member States’ preferences and it implies no actual commitment of Member States to participate in the EU RES financing mechanism. The objective of the report is to show the basic functioning of the EU RES financing mechanism. Member State representatives have checked the assumptions made in this study and have provided valuable input. The report includes the following hypothetically participating Member States: Luxemburg as a contributing Member State, Italy and Germany in a mixed role and Greece, Estonia and Lithuania as hosting countries.

The report first explains the functioning of the mechanism, its basic structure, the process and the rationale of Member States to participate. This chapter also discusses the possible allocation of costs and benefits in the mechanism, the applicable forms of support, the auction design and local administrative contexts. Subsequently, the report puts the mechanism in (hypothetical) practice, assuming the participation of the Member States mentioned above, focussing on illustrating the process of setting up an auction based on the hypothetical preferences of both contributing and hosting Member States. It then provides conclusions and an outlook on a possible implementation of the mechanism.

Download the report here.