Political framework and market structure The key results of the political framework and market structure analysis are summarised in Table 2. The results of the analysis of policy framework show that the economic and environmental potential of biomass co-firing is not adequately recognised in the legislation of all of the European countries. In a number of countries, biomass co-firing is not included in the renewable energy incentive system. The national regulations are also subject to regular modification, and this is not conducive to market stability. The legal definitions of biomass and renewable energy are poorly described, and the uncertainties in the sustainability criteria, across Europe, leads to a lack of security for investment in large scale biomass co- firing projects. A common approach across Europe, at least for financial incentives and binding sustainability criteria, as pointed out by EURELECTRIC would lead to an improved level of security for investment, and a higher propensity for the private sector to become involved in the development of fuel supply chains and of biomass co-firing projects. The analysis of the market potential shows clearly that there is significant potential growth in the European and international market for solid biomass fuels, without significant interference with food supply, wood process industry or land use issues. It is also considered that the stimulation of local markets for biomass fuels will help secure employment in the power sector, and create new jobs in the agricultural and transport sectors. It is clear from the work on the demonstration of the supply chains that the creation of local markets for biomass fuels is a big challenge, requiring coordination and co-operation between the agricultural sector and the power producers. This cannot be achieved without security of investment for both the local farmer and the power producer. The cardoon supply chain for Kardia PP could only be established to provide biomass fuel for a longer test campaign, because the cultivation of cardoons was financially supported by local authorities. A fuel supply chain based on maize residues for Kardia PP was established, with two companies operating as intermediates between PPC and farmers, which facilitated business operations and the handling of contracts. The supply chain for straw at Meliti PP could not be established on a large-scale basis, due to the inability to find a local business entity that could collect, store and deliver the biomass to the pow...
