1. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 1 European Forum for Renewable Energy Sources INFORSE - EREF - EUFORES European Energy Policy Seminar 15 June 2005 Marc Timmer EUFORES

2. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 2 Support systems EEG –Civil right instruments –5 steps Quota Model –Command and control legislation European Commission

3. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 3 Support systems EEG: several actors –Free market entrance –tariffs calculated in advance, minimum prices –Effectiveness high Quota: –1 obliged group –Relatively free pricing (buy out price) –Effectiveness low: Why?

4. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 4 PreussenElektra Case As starting point: C-379/98, 2001 Article 28 Treaty establishing the European Community: prohibiting all measures having equivalent effect to quantitative restrictions on imports national measure which is capable of hindering, directly or indirectly, actually or potentially, intra-Community trade

5. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 5 PreussenElektra obligation placed on traders in a Member State to obtain a certain percentage of their supplies of a given product from a national supplier limits to that extent the possibility of importing the same product Therefore EEG capable, at least potentially, of hindering intra-Community trade

6. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 6 PreussenElektra Justification: necessary in order to satisfy imperative requirements recognised by Community law (REWE Case) Environmental reasons Article 174, Article 6 Treaty establishing the European Community No Guarantee of origin system in place

7. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 7 Blocking effect of secondary legislation A justification on environmental or health reasons is as long possible as the concerned matter is not harmonised European wide Otherwise a Member State would be in the position to undermine each harmonising act by drafting deviant regulations at national level.

8. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 8 Questions?? Would the finalisation of the liberalisation process of the electricity market change this legal opinion on the EEG? How does the RES-E Directive affect the legal situation?

9. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 9 Liberalisation Directive 96/92: no full liberalisation Directive 2003/54: on the internal market of electricity: –Full liberalisation 30 June 2007 –No differentiation between different energy sources –Non discrimination principle based on the kind, not on the location  a different treatment of domestic/foreign producers can not be justified Does that mean that Directive 2003/54 drops down the EEG?

10. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 10 RES-Directive Promotion of electricity produced form renewable energy sources within the internal market Article 1 state that “the purpose of this Directive is to promote an increase in the contribution of renewable energy sources to electricity production in the internal market for electricity and to create a basis for a future Community framework thereof.”

11. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 11 RES-E Directive Article 4: Competence of the EC to set the timing Article 4: gaining experiences is setting the timing Article 4: fair market conditions at the internal market is setting the timing Competence in the Treaty

12. By Marc Timmer, EUFORES - INFORSE-EUFORES-EREF seminar - June 15 2005, Brussels 12 Final questions Unlimite increase of renewables without trading? Fundamental rights as threshold? –Breach of Article 1 Protocol to the Human rights: property rights European wide feed in system? Decentralised technologies  exclusion of trading? Price finding procedure as precondition for trading? Premium Model in Spain as solution?