OVERVIEW OF EU RENEWABLE ENERGY POLICY

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OVERVIEW OF EU RENEWABLE ENERGY POLICY LAW

• PROF. DR. KURT DEKETELAERE
• Professor of Environmental and Energy Law
• Director of the Institute of Environmental and
  Energy Law
• Faculty of Law, University of Leuven
• ---------------
• Visiting Senior Fellow of EC Law
• Institute of Advanced Legal Studies, University
  of London

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SURVEY

• INFORMATION SOURCES
• CONCEPT OF RENEWABLE ENERGY SOURCES
• RENEWABLE ENERGY LAW SOURCES
• COMMUNITY PROGRAMMES TO PROMOTE RENEWABLE ENERGY
  SOURCES
• CONCLUSION

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INFORMATION SOURCES

• EC Directorat-General for Energy and Transport
• http//europa.eu.int/comm/energy/index_en.html
• Agores
• http//www.agores.org
• EUR-Lex
• http//europa.eu.int/eur-lex/en/index.html

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CONCEPT OF RENEWABLE ENERGY SOURCES

• Definition of renewable energy sources
• Different renewable energy sectors

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Definition of renewable energy sources

• Article 2 of Directive 2001/77/EC
• renewable energy sources, shall mean renewable
  non-fossil energy sources (wind, solar,
  geothermal, wave, tidal, hydropower, biomass,
  landfill gas, sewage treatment plant gas and
  biogases).

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Different renewable energy sectors

• Photovoltaic
• Bioenergy Biogas - Biofuels
• Solar Thermal Power
• Small Hydro
• Wind Energy
• Geothermal Energy
• Solar Heating
• Ocean Energy

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RENEWABLE ENERGY LAW SOURCES

• EU energy policy targets
• EU renewable energy objectives for 2010
• White Paper on energy policy COM (95) 682 final
  
• White Paper on renewable energy sources and
  action plan COM (97) 599 final
• Green Paper on security of energy supply COM
  (2000) 769 final

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RENEWABLE ENERGY LAW SOURCES

• The Treaty rules and the renewable energy sector
• The Electricity Directive 2003/54/EC
• Taxation instruments to promote renewable energy
  sources
• Directives on renewable energy sources
• Community Guidelines on State Aid for
  environmental protection

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EU energy policy targets

• Reducing the strain which is being placed by
  conventional energy on the environment (Kyoto)
• Improving energy efficiency
• Maintaining security and diversification of
  energy supply
• Doubling the share of renewable energies

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EU renewable energy objectives for 2010

• Doubling the share of renewables from 6 to 12
  of energy consumption in Europe
• Increasing the share of green electricity from
  14 to 22 of electricity consumption
• Realising a savings potential of 22 in buildings
  for energy used in heating, airconditioning, hot
  water and lighting
• To achieve a share of 5 of biofuels for
  transport in the total amount of fuels in Europe
• How to achieve these energy targets which
• are the tools?

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White Paper on energy policy COM (95) 682 final

• Objectives
• Environmental protection
• Security of Energy Supply
• Industrial Competitiveness
• The renewable content
• Invites National and Community authorities to
  adopt policies mobilizing significant resources
  for RES
• Foresees specific programmes or subsidies least
  harmful to competition
• Acknowledges that RES constitute in the long term
  the main sustainable energy source and calls for
  a strategy on RES development

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White Paper on renewable energy sources and
action plan COM (97) 599 final

• Sets out Community Strategy and an Action Plan to
  double the share of Renewable energy from 6 to 12
  in Gross Inland Production by 2010
• Internal market measures
• Reinforce Community policies
• Support measures
• Campaign for take off
• Improve co-ordination with Member States
• Establishes Sub-targets in the various sectors

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Green Paper on security of energy supply COM
(2000) 769 final

• Purpose
• Why the security of energy supply?
• Increasing dependence as regards its energy
  supplies, 70 2030 from the current 50
• Disturbing consequences e.g. rocketing oil
  prices
• New challenges climate change, internal energy
  market
• Outline of a strategy
• Stop the waste (energy efficiency)
• Find a truly alternative transport policy
• Development of new and renewable energies
• Maintain a relative autonomy (analyse nuclear)
• Find common solutions to common problems
  (acceleration of the Single Market)

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Green Paper on security of energy supply COM
(2000) 769 final

• Tomorrows priorities
• A. Curbing the growth in demand by
• Completing the internal market
• Review of energy taxation
• Energy saving and diversification plans
• Dissemination of new technologies
• B. Managing the dependence on supply by
• Development of less polluting energy sources
  renewable energy sources
• Maintaining access to resources
• Ensuring external supplies

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The Treaty rules and the renewable energy sector

• Article 174 EC Treaty
• 1. Community policy on the environment shall
  contribute to pursuit of the following
  objectives
• prudent and rational utilization of natural
  energy sources
• Article 175 of the EC Treaty
• 1. The Council, acting in accordance with the
  procedure referred to in Article 251 and after
  consulting the Economic and Social Committee and
  the Committee of the Regions, shall decide what
  action is to be taken by the Community in order
  to achieve the objectives referred to in Article
  174.

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The Treaty rules and the renewable energy sector

• Article 175 of the EC Treaty
• 2. By way of derogation from the decision-making
  procedure provided for in paragraph 1 and without
  prejudice to Article 95, the Council, acting
  unanimously on a proposal from the Commission and
  after consulting the European Parliament, the
  Economic and Social Committee and the Committee
  of the Regions, shall adopt
• Provisions primarily of a fiscal nature
• Measures concerning town and country planning,
  land use
• Measures significantly affecting a Member State's
  choice between different energy sources and the
  general structure of its energy supply.

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The Electricity Directive 2003/54/EC

• Article 11 (3) and 14 (4) of the Electricity
  Directive 2003/54/EC
• Provides that a Member State may require the
  system operator and the distribution system
  operator, when dispatching generating
  installations, to give priority to generating
  installations using renewable energy sources or
  waste or producing combined heat and power

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Taxation instruments to promote renewable energy
sources

• Reform of energy taxation
• Many attempts
• Proposal for a Directive COM (1992) 226 final
• Amended proposal for a Directive COM (1995) 172
  final
• Effective incentives for policies to encourage to
  switch over to RES
• Political agreement on 20 March 2003 to the
  proposed Directive of 1997
• Incentives to use energy more efficiently
• Allows Member States to exempt or to tax at a
  reduced rate, for an environmental purpose,
  renewable energies, biofuels, etc.

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Directives on renewable energy sources

• Green electricity Directive
• Biofuels or other renewable fuels for transport
  Directive
• Directive on the energy performance on buildings

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Green electricity Directive

• Directive 2001/77
• Targets
• To establish a framework to increase the share of
  green electricity from 14 to 22 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 by 2010
• To further compliance with the commitments made
  by the EU under the 1997 Kyoto protocol on
  reducing greenhouse gas emissions

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Green electricity Directive

• Principles
• Promotion of electricity from renewable energy
  sources through
• Quantified national targets for consumption of
  electricity from renewable sources of energy
• National support schemes plus, if necessary, a
  harmonised support system
• Simplification of national administrative
  procedures for authorisation
• Guaranteed access to transmission and
  distribution of electricity from renewable energy
  sources

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Biofuels or other renewable fuels for transport
Directive

• Directive 2003/30/EEC
• Background
• Proposal for a Directive on the promotion of the
  use of biofuels COM (2002) 508 final
• Aims at promoting the use of biofuels by largely
  ensuring a minimum proportion of biofuels and
  other renewable fuels for transport
• Member States should ensure a minimum proportion
  and as a reference value
• 2 by 31 December 2005
• 5,75 by 31 December 2010

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Directive on the energy performance of buildings

• Directive 2002/91/EC
• Objectives
• Promoting the improvement of energy performance
  of buildings within the EU through cost-effective
  measures
• Convergence of building standards towards those
  of Member States which already have ambitious
  levels
• Measures
• Lays down the requirements for minimum standards
• Energy certification schemes
• Regular inspection and a methodology establishing
  integrated energy performance standards for
  buildings
• Impact of action on energy use in buildings
• Large energy savings potential in the building
  sector 22 by 2010

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Community Guidelines on State Aid for
environmental protection

• Community Guidelines on State Aid for
  environmental protection of 3 February 2001
• Background
• Memorandum of 6 November 1974 and its two
  prolongations
• Community Guidelines on State Aid for
  environmental protection of 10 March 1994
• Scope of the guidelines

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Community Guidelines on State Aid for
environmental protection

• The different types of aid used to promote
  renewable energy sources
• Investment aid to promote renewable energy
  sources
• Operating aid in the form of tax reductions or
  exemptions
• Operating aid for renewable energy sources

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COMMUNITY PROGRAMMES TO PROMOTE RENEWABLE ENERGY
SOURCES

• ALTENER I (1993 1997) and ALTENER II (1998
  2002) programme
• Focus exclusively on the promotion of renewable
  energy sources
• Aims and scope of the ALTENER programme are
  continued in the "Vertical Key Action" of the
  same name in the Intelligent Energy for Europe
• Agores

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COMMUNITY PROGRAMMES TO PROMOTE RENEWABLE ENERGY
SOURCES

• The Sixth Framework Programme (2002 2006)
  creation of a European Research Area (ERA)
• Energie (1998 2002) and Thermie (1995 1998)
• ManagEnergy
• Promotes co-operation between local and regional
  energy agencies through workshops, study tours
  and online events on energy saving and renewable
  energy
• STEER programme
• Support for initiatives relating to all energy
  aspects of transport, the diversification of
  fuels,

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COMMUNITY PROGRAMMES TO PROMOTE RENEWABLE ENERGY
SOURCES

• COOPENER programme
• Support for initiatives relating to the promotion
  renewables and energy efficiency in the
  developing countries
• Intelligent Energy for Europe (2003 2006)
• Decision 1230/2003/EC
• Renewable Energy Partnerships and the Campaign
  for Take-Off (1999-2003)
• act as a catalyst for the development of key RES
  sectors, sending clear signals for greater use of
  RES and encouraging investment.

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CONCLUSION

• In order to achieve successful implementation of
  renewable energy schemes the following measures
  need to be taken
• Political providing strong political support
  through adoption of policies in favour of RES
• Legislative ensuring that the energy market is
  accessible to independent RES producers,
  particularly through providing support for a
  guaranteed market and power sales for RES

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CONCLUSION

• Financial providing access to financial support
  for investments in RES projects, through grants,
  loans, subsidies, etc.
• Fiscal reflecting external costs and benefits
  of energy from RES compared with energy from
  fossil or nuclear sources, particularly through
  the use of energy taxation
• Role of public authorities providing active
  support in the sitting and implementation of RES
  projects, including awareness raising and
  information campaigns, targeted towards promoting
  the benefits of RES to the community