EU renewable energy policy and legislative framework – RES Directive and the NREAP

EU renewable energy policy and legislative framework – RES Directive and the NREAP

EUROPEANCOMMISSION

Andrea HercsuthDG TREN, Regulatory Policy and Promotion of Renewable Energy

Hydropower SeminarBrussels, 2nd October 2009

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Policy background

. EU renewable energy policy background and instruments

. The implementation of Directive 2001/77/EC

. The new legislation: Directive 2009/28/EC

. Other aspects to be taken into account

. Further steps

Content


Policy background

EU renewable energy policy background and instruments


Bases of the European Energy Policy

Energy efficiency and renewable energy

sources


Policy background European Renewable Energy (RES) policy

• Green Paper in 1996, then White Paper in 1997 (12% RES by 2010)

• Directive 2001/77/EC national targets for RES electricity by 2010 (EU target: 21%)

• Directive 2003/30/EC national targets for RES in transport by 2010 (EU target: 5,75%)

• Directive 2009/28/EC EU and national binding overall RES targets and minimum transport target (EU targets: 20% and 10%)

absence of legislative framework for heating and cooling


Policy background

The implementation of a directive – Dir. 2001/77/EC


The Renewable Electricity Directive 2001/77/EC

1.Sets indicative national targets for renewable electricity shares by 2010 – Member

States have to confirm targets; EU target 21%

2.Requires “appropriate steps to encourage greater consumption of electricity produced

form renewable energy sources… in conformity with the national indicative targets ”

3.Introduces the possibility of using support schemes in Member States (without

prejudice of Articles 87 and 88 of the Treaty, however could have effect of restricting trade –

based on Art. 6 and 174 of the Treaty) – possibility for Commission to propose Community

framework

4.Requires the introduction of guarantees of origin – enabling producers to demonstrate

origin of electricity

5.Requires evaluation of administrative procedures with the view to reducing barriers

6.Requires clear rules on grid issues (connection cost sharing, priority dispatch)

7.Requires periodical reporting of Member States and Commission on implementation

and progress

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RENEWABLE ENERGY DIRECTIVE

Progress in electricity from RES

. RES-E share of 15,7% (2006) - up from 14,5% in 2004

. 2010 RES-E target: 21% still significant additional effort needed RES-E growth driven by a small number of Member States and technologies

. Bottlenecks:» Administrative barriers» Grid constraints» Low support in certain MSs


Policy background

The new element of legislation: Directive 2009/28/EC


The Renewable Energy Directive

1.Sets mandatory national targets for renewable energy shares,

including 10% renewables share in transport (also RES-E), in 2020

2.Requires National Action Plans

3.Introduces the possibility of statistical transfers, joint projects and

joint support schemes between Member States and of joint projects

between Member States and 3rd countries to provide flexibility to Member

States in reaching their targets

4.Requires reduction of administrative barriers to the growth of

renewable energy, improvements in provision of information and training

and improves renewables’ access to energy grids

5.Creates a sustainability regime for biofuels


49%

13%

16%

13%

30%

18%

25%

16%

18%

20%

23%

17%

13%

40%

23%

11%

13%

14%

34%

15%

31%

24%

25%

14%

38%

15%

10%

RES share in 2020

BEBGCZDKDEEEIEELESFRITCYLVLTLUHUMTNLATPLPTROSISKFISEUK

2.2%

9.4%

6.1%

17.0%

5.8%

18.0%

3.1%

6.9%

8.7%

10.3%

5.2%

2.9%

32.6%

15%

0.9%

4.3%

2.4%

23.3%

7.2%

20.5%

17.8%

16%

6.7%

28.5%

1.3%

39.8%

0%

RES share in 2005

Target setting

Based on 2005 starting point, recent progress and a balanced sharing of the effort, weighted by GDP/capita


. Sectoral targets and estimated trajectory set by Member States. Adequate measures to achieve the targets» Support schemes» Administrative procedures, regulations and building codes» Information and training» Necessary electricity grid development» Environmental sustainability scheme for biofuels and

bioliquids » Biomass policy» Planned use of joint projects and statistical transfers. Involvement of local and regional authorities in preparing NAPs

and raising awareness

National Renewable Energy Action Plans

Provides policy stability for investmentRENEWABLE ENERGY DIRECTIVE

Required by June 2010 based on template adopted by Commission in C(2009) 5174-1


1. Summary of national renewable energy policy

2. Expected final energy consumption

3. Targets and trajectories (national and sectoral)

4. Measures for achieving the targets

5. Assessments

Policy background The content of the NREAPs (Annex VI)


Flexibility mechanisms (1) – why are they needed?

Potential %

Flat rate/ GDP %

Potential %

Flat rate/ GDP %

Potential %

Flat rate/ GDP %

Austria 39 34 Germany 16 18 Netherlands 13 14

Belgium 13 13 Greece 19 18 Poland 19 15

Bulgaria 23 16 Hungary 20 13 Portugal 34 31

Cyprus 11 13 Ireland 17 16 Romania 26 24

Czech Rep.

20 13 Italy 14 17 Slovakia 19 14

Denmark 33 30 Latvia 51 42 Slovenia 24 25

Estonia 39 25 Lithuania 36 23 Spain 24 20

Finland 43 38 Lux. 9 11 Sweden 48 49

France 19 23 Malta 6 10 UK 13 15


Flexibility mechanisms (2) – the instruments

. Statistical transfers between Member States if “seller” is on track to reach its targets (RES). Joint projects between Member States (RES-E or RES-H&C). Joint support schemes in MSs (RES). Joint projects between Member States and 3rd countries (RES-E) – only if electricity consumed in the Community

Fair distribution Efficiency

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Administrative procedures

. Ensure that national rules on authorisation procedures are proportionate and necessary:

» Coordinated, defined responsibilities at national – regional - local level, transparent timetables

» Comprehensive information on the processing of applications and on assistance available

» Streamlined administrative procedures

» Objective, transparent, non-discriminatory rules

» Transparent, cost-related administrative charges

» Simplified, less-burdensome procedures for small installations


Planning, building codes, information and training

. Recommend the use of renewable energy sources and district heating – for planning of residential and industrial areas, city infrastructure planning

. Measures to be introduced in building regulations and codes to increase RES share in buildings sector

. Information support measures and awareness raising

. Certification schemes or qualification schemes for installers, guidance for planners and architects



Challenges concerning the grid

• RES-E development and electricity grid

• Administrative procedures

• Technical adaptation

• Financing

• System design criteria:

• Large amounts of variable generation (wind, solar, wave and tidal)

• Increased distributed generation

• Remote huge (and variable) resources

• Energy efficiency and overall efficiency


Grid infrastructure

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. Requires Member States to

» develop transmission and distribution grid infrastructure, intelligent networks, storage facilities, interconnections

» to accelerate authorisation procedures for grid infrastructure» to coordinate approval of grid infrastructure with

administrative and planning procedures

. Cost sharing and cost bearing rules (transparent, objective, non-discriminatory) and their revision every two years

. TSO and DSO to provide comprehensive and necessary information to new producer (cost estimation, timetables)

. Also in 3rd package (10-year planning of TSOs, new objectives of regulators)

. District heating and gas networks



Grid operation

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. Requires Member States to ensure

» guaranteed or priority grid access » priority dispatch» appropriate grid and market related operational

measures to minimise curtailment (system operator to report to Regulator)

.Non discriminatory tariff charges



Policy background

Other aspects to be taken into account



Other aspects to be taken into account

. Internal electricity market legislation

. State aid rules – Guidelines on State Aid for Environmental Protection (2008/C 82/01)

. Environmental legislation (Natura 2000, water framework directive, etc.). Certifications and standards


Policy background

Further steps


What is next?

. Directive entered into force in June 2009, to be implemented by Member States by December 2010

. In 2009 the EU Commission will:» report on biomass sustainability criteria » refine biofuel sustainability criteria

. National Action Plans are due by June 2010

. In following years the Commission will report on:» indirect land use change » on areas with low agricultural GHG emissions » sustainability verification methods » financial instruments » cooperation mechanisms

. Biannual reporting by Member States (2011) and EU Commission (2012)


Thank you for your attention!

For more information:

http://ec.europa.eu/energy/index_en.html

[email protected]


Guarantees of origin

. Purpose: proving to final customers the share or quantity of energy from RES in supplier's energy mix – no poof of target compliance

. Requirements on information, format, period of use

. Taken into account only once (same amount of energy) and only in one energy mix

. MS may provide that no support granted

. Accurate, reliable, fraud-resistant

. MS may require indicate date of becoming operational after 25/06/2009

Documents

EU renewable energy policy and legislative framework – RES Directive and the NREAP