Energy commissioner considering infrastructure bonds and streamlining national schemes to reduce pressure on banks.

EU sources told the newswire that a new type of infrastructure project bond, proposed by commission president Jose Manuel Barroso last year, is likely to be given precedence as a new funding source.

Reuters also said it has seen a draft paper which will be launched next week, predicting the EU could save €10bn (£8.6bn) a year by converging the array of national incentive schemes currently in place, such as quotas, grants, tax exemptions and feed-in tariffs.

"We need a greater convergence of national support schemes and to move to a pan - European trade in renewable energy," states the document. "Billions of euros could be saved if member states treated renewable energy as a commodity in a single European market."

However, critics have questioned if such harmonisation would cost more than national support schemes. Green Party MEP Claude Turmes expressed surprise that the concept was being explored again, as it had been considered and then dropped in 2008.

"Harmonisation through a tradable regime would actually be costly, more than through national support schemes and via cooperation mechanisms," he said.

Oettinger said at a European Parliament hearing on Wednesday that member states need to find new sources of financing because the EIB cannot continue to prop up the industry as it moves forwards.

"Don't kid yourself," he said. "We don't have the machine to print new money.

"The EIB can help us, but they are not a charitable organisation. Member states need to look at this in an innovative manner."

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