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NORTH EAST LAW REVIEW 185 of the trading scheme, requires the EU to promote both energy efficiency and the use of renewable energy sources.150 However, the focus on renewable and waste heat energy fails to take account of the ferro-alloy produced in the arc furnace: After all, it is the metal production that allowances have to be surrendered for, not the power production. It follows that, in terms of allowance allocation, there is no need for a level playing field between renewable electricity and waste heat electricity, as they are simply not playing in the same game. Incentives for green solutions as envisaged by the Fifth Environmental Action Programme can be created by way of more specific schemes such as state aid or special feed-in tariffs, provided that they are not incompatible with the objectives of the EEA Agreement.151 But it is not up to the allocation scheme to balance out two processes that are related only through the common denominator of the (by-) production of ‘green’ electricity. 5.2.2.2 Mean Grid Power A comparison between waste heat electricity and conventional grid power faces, in principle the same objection. However, the 2009 amendment explicitly stipulates that free allocation should avoid undue distortion of the respective markets; a greater competitive relation between grid electricity and waste heat electricity is at least assumed. In this context, however, the conditions provided by the ETS even seem to favour waste heat electricity over the electricity mix from the power grids: According to the transfer factors identified above, average suppliers of ‘mean’ electricity have to purchase 0.4-0.9 allowances for each MWh of electricity sold, while waste heat electricity requires the purchase of only 0.094 allowances. 1 0.8 0.6 0.4 0.2 0 0.4-0.9 0 0.094 0.54 Electricity from Renewable Energy Finnfjord Waste 75/25 Reference Heat Electricity Mix (maximum capacity) Mean Grid Power 150 Decision No 2179/98/EC of the European Parliament and of the Council of 24 September 1998 on the review of the European Community programme of policy and action in relation to the environment and sustainable development ‘Towards sustainability' [1998] OJ L275/1, art 3(2)(a). 151 EEA Agreement (n 140), art 61(1),(3). Allowances to be Purchased per MWh of electricityPDF Image | ELECTRICITY PRODUCTION FROM INDUSTRIAL WASTE HEAT
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