1. Information - CommunicationDirectorate general for Energy and Transport European Commission The situation of the Directive on electricity from renewable energies – The recent Communication on support schemes Beatriz Yordi DG Energy and Transport

2. Information - CommunicationDirectorate general for Energy and Transport Principles of the renewable electricity directive 2001/77/EC 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 for electricity from renewable energy sources Promotion of electricity from renewable energy sources through:

3. Information - CommunicationDirectorate general for Energy and Transport Where are we? Setting of national targets All EU15 Member States have adopted national targets, in line with the reference values listed in Annex I of Directive 2001/77/EC. The New EU10 have set up national targets published in the Accession Treaty in April 2003. 2010 Targets have been agreed with Bulgaria and Romania. If EU-25 Member States meet these national targets, the 2010 target of 21% will be achieved. The 2010 target

4. Information - CommunicationDirectorate general for Energy and Transport Commission has approved COM(2004) 366 final “The share of renewable energy in the EU”. Commission Staff Working Document SEC(2004) 547: EU-25 country reports Commission has approved COM (2005) 627 final “The support of electricity from renewable energy sources”. Where we are? The Commission assessment reports:

5. Information - CommunicationDirectorate general for Energy and Transport European context The Commission has adopted a new Communication on support schemes of electricity from renewable energy sources COM(2005)627. Meets the reporting requirements set out in Articles 4 & 8 in Directive 2001/77/EC. On the 7 th of December 2005:

6. Information - CommunicationDirectorate general for Energy and Transport Status for support mechanisms for RES-E in EU15

7. Information - CommunicationDirectorate general for Energy and Transport Status for support mechanisms for RES-E in EU10 + (2)

8. Information - CommunicationDirectorate general for Energy and Transport Where are we? Production of ‘new’ RES-E (without hydropower) in 2003 is equivalent to the combined overall electricity production in Portugal, Denmark and Slovenia

9. Information - CommunicationDirectorate general for Energy and Transport Price ranges for direct support of wind onshore in EU-15 member states compared to the long term marginal generation costs

10. Information - CommunicationDirectorate general for Energy and Transport Price ranges for direct support of wind onshore in EU-10 member states compared to the long term marginal generation costs

11. Information - CommunicationDirectorate general for Energy and Transport Definition of 2003 effectiveness indicator – example biogas in UK

12. Information - CommunicationDirectorate general for Energy and Transport Effectiveness indicator for wind onshore electricity in the period 1998- 2004 EU-15.

13. Information - CommunicationDirectorate general for Energy and Transport Effectiveness indicator for wind onshore electricity in the period 1998- 2004 EU-10

14. Information - CommunicationDirectorate general for Energy and Transport COM (2005) 627: Evaluation of support schemes Conclusions for the wind energy sector I TGC present currently a significantly higher support level than feed- in tariffs. This could be explained by: higher risk premium demanded by investors, administrative barriers, immature green certificate markets. The most effective systems for wind energy are currently the feed-in tariff systems in Germany, Spain and Denmark.

15. Information - CommunicationDirectorate general for Energy and Transport COM (2005) 627: Evaluation of support schemes Conclusions for the wind energy sector II Support level in 1/4 of Member States too low for any takeoff; in another quarter sufficient but still mediocre results - this can be due to the existence of grid and administrative barriers. Producer profits/annuity higher for TGC - as TGCs are rather new instruments, this could be influenced by significant transient effects.

16. Information - CommunicationDirectorate general for Energy and Transport Price ranges for direct support of agricultural biogas in EU-15 member states compared to the long-term marginal generation costs.

17. Information - CommunicationDirectorate general for Energy and Transport Price ranges for supported agricultural biogas in EU-10 member states compared to the long-term marginal generation costs.

18. Information - CommunicationDirectorate general for Energy and Transport Effectiveness indicator for biogas electricity in the period 1998-2003.

19. Information - CommunicationDirectorate general for Energy and Transport Effectiveness indicator for biogas electricity in the period 1998-2003.

20. Information - CommunicationDirectorate general for Energy and Transport COM (2005) 627: Evaluation of support schemes Internal Market and trade aspects I Unbundling, transparency and dominant players truly independent TSOs and DSOs are an essential factor for fair grid access and grid development Intermittency and Balancing power Appropriated prediction and forecasting contribute to a better integration of RES-E in the internal market and increase its value Shorter gate-closure and fair regulation of balancing cost can ease these tasks

21. Information - CommunicationDirectorate general for Energy and Transport COM (2005) 627: Evaluation of support schemes Internal Market and trade aspects II Trade of power Increase of available interconnection capacity facilitates integration of RES-E and can reduce the need for balancing power Full implementation of the disclosure (Article 3(6) of 2003/54/EC, “consumers have to be informed of each energy source of the overall fuel mix”) would increase the green value of RES-E.  The design of the electricity market is essential for the development and take-up of RES-E.  Internal electricity market and support of RES-E are intimately linked together and profit from each other!

22. Information - CommunicationDirectorate general for Energy and Transport COM (2005) 627: Evaluation of support schemes Feed-in tariffs have been more effective and more efficient than quota systems in wind energy. High prices for tradable green certificates due to higher risk cost and immature certificate markets? Harmonisation would be premature, more experience needs to be gained, especially with quota systems. Administrative and grid barriers need to be addressed. Main conclusions Other sectors have a more complex analyses.

23. Information - CommunicationDirectorate general for Energy and Transport 1.Optimise the support system Adapt the support level to the generation costs Half of the Member States give not enough support to ensure deployment of RES-E Increase stability I nstability increases risk cost Avoid stop-and-go nature of the support Reduce investment risk Especially green certificate markets need a high liquidity Time for coordination

24. Information - CommunicationDirectorate general for Energy and Transport 1.Optimise the support system Encourage technology diversity. Ensure compatibility with the internal electricity market. Encourage employment and local and regional benefits. Twinning with actions on energy efficiency and demand management. Time for coordination

25. Information - CommunicationDirectorate general for Energy and Transport Optimisation: Reduce administrative barriers Establish one-stop authorisation agencies. Establish clear guidelines for authorisation procedures with a clear attribution of responsibilities. Establish pre-planning mechanisms that require regions and municipalities to assign locations for RES. Lighter procedures for small projects. Guidance on relationship with EU environmental legislation. Time for coordination

26. Information - CommunicationDirectorate general for Energy and Transport Optimisation: Ensure fair grid access Grid connection, grid use conditions as well as cost bearing and sharing must be transparent and non- discriminatory. Grid infrastructure enforcement and development needs to be planned and developed in advance. Associated costs should normally be covered by grid operators. Pricing of electricity throughout the network should be fair and transparent and take into account the benefits of embedded generation. Time for coordination

27. Information - CommunicationDirectorate general for Energy and Transport 2.Cooperation Intensify cooperation and co-ordination between Member States. Examples: feed-in cooperation established by Spain and Germany, other Member States are invited to join. Time for coordination

28. Information - CommunicationDirectorate general for Energy and Transport Directive on RES-E 2001/77/EC Several Member States seem to be in conflict with Article 6 (administrative barriers) and Article 7 (grid barriers) The Commission is currently preparing legal actions. Legal aspects

29. Information - CommunicationDirectorate general for Energy and Transport Directive on RES-E 2001/77/EC March 2006 Updated Country profiles available: http://europa.eu.int/comm/energy/res/legislation/ share_res_eu_en.htm October 2006 New report from the Commission on the degree of success in achieving the targets End of 2007 New report on support schemes New reporting

30. Information - CommunicationDirectorate general for Energy and Transport Thank you very much for your attention. The Communication on »The support of electricity from renewable energy sources», COM(2005) 627 can be found at: http://europa.eu.int/comm/energy/res/legislation/index_en.htm