JOINT RESEARCH CENTRE

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EU Relevant Legislation and Instruments for
Promoting Renewable Energy Sources
Nicolae Scarlat European Commission Institute
for Energy Renewable Energies Unit
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The Institute for Energy a Research Based
Policy Support Provider
IE Mission Statement The Institute for
Energy provides scientific and technical support
for the conception, development, implementation
and monitoring of community policies related to
energy. Special emphasis is given to the
security of energy supply and to sustainable and
safe energy production.
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Renewable Energies Unit

• Core task
• Scientific support for EU policies on RE and
  energy efficiency for a sustainable energy supply
  with emphasis on
• Research on Photovoltaic Solar Electricity
• Monitoring the implementation of RES
• Assessment of Biofuels

• Activities
• Performance and Reliability testing of new
  Photovoltaic Devices
• EU reference system for Renewable Energies and
  Energy Efficiency
• European Resources and Environmental Impacts of
  Biofuels

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• RES a key element for the present day challenges
• Indigenous and decentralised energy sources
• Improving the security of energy supply and
  reducing the EU growing dependence on imported
  energy sources
• Reducing GHG emissions and improving climate
  change benefits
• Renewable energy expected to be economically
  competitive with conventional energy sources in
  the medium to long term.
• Providing new opportunities for local economy and
  rural development
• Concerns about environmental impacts and
  increased competition for raw material for
  bioenergy

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RES policy framework

• White Paper on Renewable Energies COM(97)299
• Set out Community Strategy and an Action Plan to
  increase the share of renewable energy from 6 to
  12 of the total energy consumption in EU by 2010
• Established sub-targets in the various sectors
• Action plan
• Internal market measures
• Reinforce Community policies
• Support measures
• Campaign to take-off
• Coordination between Member States

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• RES Electricity Directive 2001/77/EC
• to increase the share of RES electricity from
  14 to 21 of gross electricity consumption by
  2010
• to help to double the share of renewable energy
  from 6 to 12 of gross energy consumption in
  Europe
• to further compliance with EU commitments under
  the 1997 Kyoto Protocol on reducing Greenhouse
  Gas Emissions
• Biofuels Directive 2003/30/EC
• to achieve a minimum share of biofuels of 2 by
  2005
• to achieve a share of 5.75 of biofuels for
  transport in the total amount of fuels in EU by
  2010
• Member States can choose their own fuel mix of
  biofuels and strategies to meet the targets

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• Biomass Action Plan COM(2005) 628 final
• Actions aimed at increasing the demand for
  biomass, improving supply, overcoming technical
  barriers and developing research
• Proposed measures for three sectors for biomass
  use
• heat production
• electricity production
• transport
• Stimulating biomass supply
• aid for energy crops (CAP)
• energy use of wood and wood residues
• standards for solid biomass
• evaluation of physical and economic biomass
  availability

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• Biomass Action Plan COM(2005) 628 final
• Main issues
• Availability of biomass and impacts of increased
  biomass production for energy and fuels
• Environmental impacts
• biodiversity
• water availability and quality
• GHG emissions
• Impacts on agricultural markets
• competition for land use
• prices for food and feed
• Potential from forests
• impact of the energy use of wood and wood
  residues on forest-based industries
• availability of raw materials for other uses

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• EU Forest Action Plan COM(2006) 302 final
• Key Action 4 Promote the use of forest biomass
  for energy generation
• mitigate climate change
• improving energy self-sufficiency
• enhancing security of supply
• providing job opportunities in rural areas
• Measures
• assessment of availability and mobilisation of
  small/low value timber and forestry residues for
  energy
• assess feasibility of using forest residues and
  wood biomass for energy
• encourage cooperation in energy projects
• RD for heating and cooling, electricity and
  fuels from forest resources
• information to forest owners on the opportunities
  of energy feedstock production

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Energy Policy targets

• Meeting Kyoto objectives 8 CO2 reduction
  between 2008-2012 compared to 1990
• Doubling the share of Renewable Energies from
  6 to 12 of gross inland energy consumption
  by 2010
• Improving Energy Efficiency by 18 until 2010
  compared to 1995
• Reaching the share of RES Electricity of 21
  of gross electricity consumption by 2010
• Share of 5.75 of Biofuels in the total
  amount of fuels used in transport in EU by
  2010

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Renewable energy shares of primary energy
consumption in EU
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2005
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Renewable energy electricity shares in EU-2005
and indicative targets for 2010
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Biofuels in EU in 2006
Target for 2010 18 Mtoe
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• New Energy Package-An energy policy for Europe
  COM(2007) 1 final
• For a low consumption economy based on more
  secure, more competitive and more sustainable
  energy.
• Serious energy challenges
• sustainability and greenhouse gas emissions
• security of supply, import dependence
• competitiveness and internal energy market
• Several energy objectives were set
• Establish the internal energy market
• Ensure a secure energy supply
• Reduce greenhouse gas emissions (energy
  efficiency RES
• (energy accounts for 80 of all GHG emissions in
  EU).
• Develop energy technologies (CCS, other low-C
  technologies)
• Consider the future of nuclear energy

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• Road Map COM(2006)848
• A long-term strategy for RES in the EU
• mandatory target of 20 for RES share of energy
  consumption in the EU by 2020
• mandatory minimum target of 10 for biofuels
• Member States to set mandatory targets and Action
  Plans on Electricity, Heating and Cooling and
  Biofuels.
• New measures aiming to
• remove the barriers to RES
• support, encourage and promote RES through an
  incentive/support system
• better integration of RES into the power grid
• optimal use of the financial instruments
• Structural and Cohesion Funds
• supporting research and disseminating technology

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• New RES mandatory targets for 2020
• An energy policy for Europe COM(2007) 1 final
• European Council (8-9 March 2007)
• GHG emissions reduction of 20 aiming to prevent
  temperature increase more than 2C above
  pre-industrial levels
• Renewable energies share of 20 of total EU
  energy consumption
• Binding minimum target of 10 share of biofuels
  in overall EU transport fuel consumption
• Reducing energy consumption by 20

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Proposal for a new RES directive COM(2008) 19

• RES targets in final energy consumption for
  electricity, heating and cooling and
  transport
• Biofuels targets of 10 in each MS
• National Action Plans for RES including
  measures and national policies
• Guarantees of origin of electricity, heating
  and cooling
• Transfer of guarantees of origin
• Guaranteed access to transmission
  distribution of RES electricity
• Promote, remove barriers for RES heating and
  cooling
• Adequate grid infrastructure for RES
  electricity production
• Biofuels sustainability

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Proposal for a new RES directive COM(2008) 19
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Proposal for a new RES directive COM(2008) 19

• Conditions for biofuels target
• production being sustainable
• second-generation being commercially available
• The environmental sustainability criteria
• count towards the RES national targets
• eligible for financial support
• The environmental sustainability criteria for
  biofuels
• GHG emission savings at least 35
• High biodiversity value land
• High carbon stock areas
• Sustainability scheme for energy uses of biomass
  other than biofuels

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Proposal for a new RES directive COM(2008) 19

• Reporting every second year after 2011 on
• Sectoral and overall shares of RES
• Development and shares of biofuels
• Support schemes to promote RES
• Developments in the availability of biomass
  resources for energy purposes
• Commodity price and land use changes due to
  biomass use for energy
• Estimated impact of biofuels on biodiversity,
  water resources, water quality and soil quality
• Estimated net GHG emissions savings from RES

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• EU tools to promote RES
• Measures at EU-level
• Legally binding targets
• Tax incentives
• State aid
• RD 7th Framework Programme for Research
• Energy taxation Directive 2003/96/EC
• for the taxation of energy products and
  electricity
• Reduced rates of excise duty
• Captive fleets may qualify for an additional
  reduced rate
• Measures under the CAP
• 45 Eur/ha for 2 mio. ha in EU27
• MS can pay 50 of set-up costs for multi annual
  energy crops
• Non-food crop production on set-aside land
• Rural Development Policy

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Difficulties of meeting RES targets

• Availability of resources
• High initial cost of RES due to the investment
  required
• Externalities have not been taken into account,
  which gives fossil fuels an artificial
  advantage
• Administrative problems resulting from the
  decentralised nature of RES applications
• Discriminatory rules governing grid access
• Difficulties for monitoring and accounting for
  RES heating and cooling
• Inadequate information available
• Increase in energy consumption invalidating the
  RES progress

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Issues to address for implementing RES

• Availability of (local) resources
• Assessment and measures for mobilising of
  resources
• Availability and maturity of technologies
• Existing infrastructure and local energy demand
• Economics of RES energy prices and trends
• Effects on local community
• Acceptability of local population
• Competition of resources with other uses and
  sectors
• Sustainability of energy production and
  potential effects on environment, economy and
  society

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Thanks for your attention
European Commission Institute for Energy
Renewable Energies Unit