The New Energy market and the revised Renewable Energy Directive What's in for cooperatives? Alexandra SOMBSTHAY Unité C1 – Renewable Energy Unit DG ENER, European Commission

« « I want to reform and reorganise Europe’s energy policy «  I want to reform and reorganise Europe’s energy policy in a new European Energy Union. «  Jean-Claude Juncker

The Energy Union Where we want to go: What this means: Secure, sustainable, competitive, affordable energy for every European What this means: Energy security, solidarity and trust A fully integrated internal EU-wide energy market Energy efficiency as an energy source in its own right Transition to a low-carbon society Research, innovation and competiveness How we want to reach it:

Citizens taking ownership of the energy transition Our vision of an Energy Union True solidarity and trust; speaking with one voice in global affairs An integrated, continent-wide energy system Sustainable, low-carbon and climate-friendly economy Strong, innovative and competitive European economy Citizens taking ownership of the energy transition

Consumers are central to the Energy Union "with citizens at its core, where citizens take ownership of the energy transition, benefit from new technologies to reduce their bills, [and] participate actively in the market"

Customer satisfaction is below average Postal services Electricity Gas Mortgages DG SANCO Consumer Scoreboard 2014

The energy landscape has evolved

2030 framework for climate & energy -20 % Greenhouse Gas Emissions 20% Renewable Energy 20 % Energy Efficiency 10 % Interconnection 2020  - 40 % Greenhouse Gas Emissions 27 % Renewable Energy  27%* Energy Efficiency 15 % Interconnection 2030 * To be reviewed by 2020, having in mind an EU level of 30% New governance system + indicators

Creating a conducive environment for renewables Stable investment framework leading to low-cost financing Market based support Synergies with other sectors (HC, T) Delivering on the Energy Union's ambition of making the EU the world leader in renewable energy requires creating a conducive environment for renewables to attract the required investments

In the current framework: - No EU legal definition on self-consumption - Best practices were highlighted in the 2014 Communication (next slide) - Different national legislation that in some cases prohibiting self-consumption or lead to market fragmentation (financial/administrative barriers)

A New Deal for Energy Consumers Communication 2015 Consumer empowerment is needed "Providing consumers with frequent access, including in near real-time, to partially standardised, meaningful, accurate and understandable information on consumption and related costs as well as the types of energy sources" A New Deal for Energy Consumers Communication 2015

The 2030 RES framework Based on full delivery of the 2020 framework EU-level at least 27 % target No nationally binding RES targets - but individual MS to contribute More regional cooperation and coordination

Role of the next Renewable Energy Directive Achieve at least 27% RES at EU level Further integrate renewable electricity into the market Decarbonise heating and cooling Increase renewable energy use in the transport Empower consumers and remove administrative barriers

Selected best practices on self-consumption Consumers right to renewable energy self-consumption and distributed storage Preference to be given to direct self-consumption over injection into the grid of non-consumed renewable electricity Limiting net-metering schemes to phase-in periods and regular review in a transparent and predictably way Avoidance of retroactive changes to existing self-consumption projects to guarantee investment security. Giving the right market signals through time-of-use tariffs Tariff frameworks may be adjusted: result is higher fixed charge but variable charge for fixed cost recovery retained for efficiency reasons Ensuring predictable conditions by announcing caps of installed capacities after which grid cost exemption are revised.

Empowering citizens means… •Getting informed via smart solutions •Empowering local communities •Involving municipalities •Home-producing energy •Reinforcing training and information

Local acceptance Nine in ten Europeans (90%) think that it is important for their government to set RES targets (Eurobarometer 409, 2013) However, lots of opposition at local level : IN BE (Wall.), 37 projects (215 windmills) opposed in 2014 In DK, more than 200 anti-wind groups In FR, 1/3 wind project opposed Entails lenghty procedures, uncertainty, higher costs Key issues for local communities lack of access to project ownership or finance lack of information lack of participation Energy communities could bring solutions

The role of local communities Increase local acceptance of RES projects Contribute to renewable energy targets Empower consumers Bring added value to the local economy Create local employement Can reduce prices for the end-consumer

Concretely, what are the options?

The issue of guarantees of origin (GO): Requirements for disclosure of the sources of electricity will be reviewed EU instrument for renewable energy mix disclosure to consumers - the guarantee of origin (GO) is part of the Renewables Directive Use of GOs are not compulsory for energy mix disclosure requirements Electricity suppliers required to disclose energy mix in energy bills under the Electricity Directive (2009/72/EC) This legislation is under review at the same time as the renewables legislation

Mid-term assessment of the current Renewable Energy Directive "It is worth investigating the possible extension of the use of GOs to all types of power generation i.e. including electricity from fossil and nuclear generation" "This would help support the tracking and auditing on non-renewable supplies and underpin the integrity of the supply mix disclosure statements that inform consumer choices concerning these generation types"

Good practice ideas for developing the system

Energy Thank you! http://ec.europa.eu/energy/renewables/index_fr.htm