EUROPEAN COMMISSION

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

Hydropower Seminar Brussels, 2 nd October 2009

Andrea Hercsuth DG TREN, Regulatory Policy and Promotion of Renewable Energy

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and instruments Policy background

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Content

EU renewable energy policy background The implementation of Directive 2001/77/EC The new legislation: Directive 2009/28/EC Other aspects to be taken into account Further steps

RENEWABLE ENERGY DIRECTIVE | 2

Policy background

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EU renewable energy policy background and instruments

RENEWABLE ENERGY DIRECTIVE | 3

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Bases of the European Energy Policy

Climate change security and continuity of energy supplies

Energy efficiency and renewable energy sources

Competi tiveness RENEWABLE ENERGY DIRECTIVE | 4

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Green Paper

in 1996, then

White Paper

in 1997 (12% RES by 2010) •

Directive 2001/77/EC

target: 21%) national targets for

RES electricity

by 2010 (EU •

Directive 2003/30/EC

target: 5,75%) national targets for

RES in transport

by 2010 (EU

absence of legislative framework for heating and cooling

•

Directive 2009/28/EC

EU and national binding

overall RES targets

minimum transport target (EU targets: 20% and 10%) and RENEWABLE ENERGY DIRECTIVE | 5

Policy background

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

RENEWABLE ENERGY DIRECTIVE | 6

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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 RENEWABLE ENERGY DIRECTIVE | 7

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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

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

RENEWABLE ENERGY DIRECTIVE | 9

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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

RENEWABLE ENERGY DIRECTIVE | 10

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Target setting

BE BG CZ DK DE EE IE EL ES FR IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE UK

2.2% 6.1% 5.8% 9.4% 3.1% 5.2% 2.9% 6.9% 8.7% 10.3%

13% 16% 13%

17.0%

18%

18.0%

16% 18% 20% 13% 17% 25% 23% 30%

RES share in 2005 RES share in 2020 32.6%

40%

15%

23%

0.

9% 4.3% 0% 2.4%

11% 10% 13% 14%

23.3%

34%

7.2% 6.7%

15%

17.8% 20.5% 16%

14% 24% 25% 31%

28.5%

38%

39.8%

49%

1.3%

15%

 Based on 2005 starting point, recent progress and a balanced sharing of the effort, weighted by GDP/capita RENEWABLE ENERGY DIRECTIVE | 11

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National Renewable Energy Action Plans

Required by June 2010 based on template adopted by .

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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

Provides policy stability for investment

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Policy background

The content of the NREAPs (Annex VI)

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 RENEWABLE ENERGY DIRECTIVE | 13

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Flexibility mechanisms (1) – why are they needed?

Potential % Flat rate/ GDP % Potential % Flat rate/ GDP % Potential % Flat rate/ GDP % Austria

Belgium

Bulgaria

Cyprus

Czech Rep.

Denmark

Estonia Finland

France

39

13

23

11

20

33

39 43

19

34

13

16

13

13

30

25 38

23 Germany

Greece

Hungary

Ireland

Italy

Latvia Lithuania

Lux.

Malta 16

19

20

17

14

51 36

9 6 18

18

13

16

17

42 23

11 10

Netherlands

Poland Portugal

13

19 34

14

15 31 Romania Slovakia

Slovenia

26 19

24

24 14

25

Spain

Sweden

24

48

20

49

UK 13

RENEWABLE ENERGY DIRECTIVE |

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Flexibility mechanisms (2) – the instruments

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Efficiency

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Fair distribution 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 RENEWABLE ENERGY DIRECTIVE | 15

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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

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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

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Challenges concerning the grid

RES-E development and electricity grid

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Administrative procedures

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Technical adaptation Financing System design criteria:

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

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Increased distributed generation

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Remote huge (and variable) resources Energy efficiency and overall efficiency

RENEWABLE ENERGY DIRECTIVE | 18

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Grid infrastructure

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 3 rd package (10-year planning of TSOs, new objectives of regulators) District heating and gas networks

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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

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Other aspects to be taken into account

Policy background

RENEWABLE ENERGY DIRECTIVE | 21

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Other aspects to be taken into account

Internal electricity market

legislation rules – Guidelines on State Aid for

State aid

Environmental Protection (2008/C 82/01)

Environmental legislation

framework directive, etc.) (Natura 2000, water

Certifications

and standards

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Further steps

Policy background

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What is next?

Directive

entered into force in June 2009

, to be

implemented

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

» indirect land use change » » » » on areas with low agricultural GHG emissions sustainability verification methods financial instruments cooperation mechanisms on: Biannual

reporting

by Member by Member States (2011) and EU Commission (2012) RENEWABLE ENERGY DIRECTIVE | 24

For more information: http://ec.europa.eu/energy/index_en.html

[email protected]

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Thank you for your attention!

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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 RENEWABLE ENERGY DIRECTIVE | 26