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E R E F European Renewable Energies Federation Chain Reaction ‐ The spread of retrospective measures on support for renewable energy in the EU MS Maelle.

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Presentation on theme: "E R E F European Renewable Energies Federation Chain Reaction ‐ The spread of retrospective measures on support for renewable energy in the EU MS Maelle."— Presentation transcript:

1 E R E F European Renewable Energies Federation Chain Reaction ‐ The spread of retrospective measures on support for renewable energy in the EU MS Maelle Pelisson EREF Policy Adviser 4 December Brussels

2 E R E F European Renewable Energies Federation The EU RES framework, a stable policy The 2009 RES Directive established a stable European policy framework RES industry contributes to 1% of the EU GDP In 2012, 1.2 millions people,working in the RES industry Most Member States on track RES share in 2012 = 13%

3 E R E F European Renewable Energies Federation Implementation difficulties at national level Increase of retrospective measures to national RES support scheme. European economic crisis and the perception that RES is expensive Tariff deficits created by regulated prices and RES being blamed for Unexpected cost reduction of RES technologies (i.e solar PV and wind) Support schemes designed in a inflexible way

4 E R E F European Renewable Energies Federation Chain reaction: retrospective, retroactive changes and moratorium in Europe Retrospective Retroactive Moratorium Investors confidence Bulgaria July % retrospective cut to RES FiT, applying to existing installation. Followed by an additional 39% cut for PV projects. September 2012 – new grid access payment between 5-40% for RES installations only Currently – the government is proposing an additional 20% tax on RES project Greece November levy from 10-30% for PV, wind, small hydro and biomass installations October 2013 – New levy for RES proposed by the Government Spain retrospective 7% flat rate tax on gross revenues of electricity sales February 2013 – series of retrospective measures reducing support of RES (i.e -37% for the CSP sector) July retroactive measure limiting to 7% the return on investments of RES projects

5 E R E F European Renewable Energies Federation What are the consequences for RES sector? Retrospective changes Change of expected revenue stream Bankrupcy of RES projects RES = risky investment Higher interest rates from banks Increased capital cost = RES more esxpensive

6 E R E F European Renewable Energies Federation The support of the European Commission against retrospective changes The European Commission has always strongly and openly criticized retroactive and retrospective changes. -Official letters to the Spanish and Czech Governments were sent by Commissioners Oettinger and Hedegaard -An infringement procedure has been considered against Bulgaria Commission communication package on State interventions in the electricity sector (November 2013) - Give guidance to national governments on how to design their national support schemes to avoid such situations

7 E R E F European Renewable Energies Federation Policy recommendations Create and implement a predictable and stable legislative framework for renewables at national level Respect the commitments taken in the NREAP as much as possible or notify changes to the Commission Provide for some flexibility in the renewable energy support schemes Include the renewable industry in discussions about changes to support schemes to find together alternative solutions to the problems identified Good examples and best practices Germany FiT with disgression of FiT rates Portugal Intense negotiations leading to voluntary agreement with 100% of eligible power

8 E R E F European Renewable Energies Federation For detailed information, please consult our regularly updated Keep-on-Track! Policy paper on:

9 E R E F European Renewable Energies Federation Thanks for your attention!


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