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

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. EUROPEAN COMMISSION. Policy background. . Content.

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

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  1. EU renewable energy policy and legislative framework – RES Directive and the NREAP Hydropower Seminar Brussels, 2nd October 2009 Andrea Hercsuth DG TREN, Regulatory Policy and Promotion of Renewable Energy EUROPEANCOMMISSION

  2. Policy background  Content • 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

  3. Policy background  • EU renewable energy policy background and instruments

  4. Bases of the European Energy Policy Energy efficiency and renewable energy sources

  5. Policy background  European Renewable Energy (RES) policy • Green Paper in 1996, thenWhite 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

  6. Policy background  • The implementation of a directive – Dir. 2001/77/EC

  7. The Renewable Electricity Directive 2001/77/EC Sets indicative national targets for renewable electricity shares by 2010 – Member States have to confirm targets; EU target 21% Requires “appropriate steps to encourage greater consumption of electricity produced form renewable energy sources… in conformity with the national indicative targets ” 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 Requires the introduction of guarantees of origin – enabling producers to demonstrate origin of electricity Requires evaluation of administrative procedures with the view to reducing barriers Requires clear rules on grid issues (connection cost sharing, priority dispatch) Requires periodical reporting of Member States and Commission on implementation and progress 

  8. 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 8 RENEWABLE ENERGY DIRECTIVE |

  9. Policy background  The new element of legislation: Directive 2009/28/EC

  10. The Renewable Energy Directive • Sets mandatory national targets for renewable energy shares, including 10% renewables share in transport (also RES-E), in 2020 • Requires National Action Plans • Introduces the possibility of statistical transfers, joint projects and jointsupport schemes between Member States and of joint projects between Member States and 3rd countries to provide flexibility to Member States in reaching their targets • Requires reduction of administrative barriers to the growth of renewable energy, improvements in provision of information and trainingand improves renewables’ access to energy grids • Creates a sustainability regime for biofuels

  11. 13% 16% 13% 30% 18% 25% 16% 18% 20% 23% 17% 13% 40% 23% 11% 13% 10% 14% 34% 15% 31% 24% 25% 14% 38% 49% 15%  Target setting 2.2% 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 RES share in 2005 9.4% 6.1% RES share in 2020 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% 0% 2.4% 23.3% 7.2% 20.5% 17.8% 16% 6.7% 28.5% 39.8% 1.3% • Based on 2005 starting point, recent progress and a balanced sharing of the effort, weighted by GDP/capita

  12. National Renewable Energy Action Plans Required by June 2010 based on template adopted by Commission in C(2009) 5174-1 • 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 12 RENEWABLE ENERGY DIRECTIVE |

  13. The content of the NREAPs (Annex VI) Policy background • Summary of national renewable energy policy • Expected final energy consumption • Targets and trajectories (national and sectoral) • Measures for achieving the targets • Assessments

  14. Flexibility mechanisms (1) – why are they needed?

  15. Flexibility mechanisms (2) – the instruments Fair distribution Efficiency • 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

  16. 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 16 RENEWABLE ENERGY DIRECTIVE |

  17. 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 RENEWABLE ENERGY DIRECTIVE 17 |

  18. 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

  19. 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 3rd package (10-year planning of TSOs, new objectives of regulators) • District heating and gas networks 19 RENEWABLE ENERGY DIRECTIVE |

  20. Grid operation  • 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 20 RENEWABLE ENERGY DIRECTIVE |

  21. Policy background  • Other aspects to be taken into account

  22. 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 22 RENEWABLE ENERGY DIRECTIVE |

  23. Policy background  Further steps

  24. 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)

  25. Thank you for your attention! For more information: http://ec.europa.eu/energy/index_en.html Andrea.Hercsuth@ec.europa.eu 

  26. 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

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