f Irish Implementation of Art. 16 of the Renewable Energy Directive – a long road to where? Joanne Finn Head of EU, Competition & Regulated Markets Thursday, 7 May 2015

Introduction ─Directive 2009/28/EC on the promotion of the use of energy from renewable sources ─Irish implementation - S.I. 147/2011 ─Commission legal action of January 2014 ─…and withdrawal of that action in January 2015 ─Current State of play in relation to transposition? SI 483/2014

The Directive – key provisions ─A “Common Framework” for the promotion of renewable energy ─Calculated Targets – Ireland’s was 16% and 10% of transport sector consumption by 2020 ─A National Action Plan inc. reform of planning, pricing & access to network to promote renewables ─Co-operation between Member States ─Guarantee of Origin ─Biofuels/Bioliquids ─Transposition deadline by 5 December 2010

Article 16(1) – Developing the Grid MS shall take appropriate steps to: ─Develop T & D grid infrastructure, intelligent networks, storage facilities and the system … in order to allow ─the secure operation of the system as it accommodates…further development of electricity production from renewables, including ICs and ─MS shall also take appropriate steps to accelerate authorisation procedures for grid infrastructure and to coordinate approval of grid infrastructure with admin & planning procedures

Article 16(2) – Access to the Grid (2)Subject to requirements relating to reliability and safety of the grid, based on transparent and non-discriminatory criteria: ─(a) MS shall ensure that TSOs and DSOs guarantee the T&D of renewable electricity ─(b) MS shall also provide either for priority access or guaranteed access to the grid-system of renewable electricity ─(c)MS shall ensure that when dispatching electricity generating installations, transmission system operators shall give priority to generating installations using renewable energy sources in so far as the secure operation of the national electricity system permits and based on transparent and non- discriminatory criteria (…)

Article 16(2) – Access to the Grid (cont.) ─(C – contd) Member States shall ensure that appropriate grid and market-related operational measures are taken in order to minimise the curtailment of electricity produced from renewable energy sources.(…), Members States shall ensure that the responsible system operators report to the competent regulatory authority on those measures and indicate which corrective measures they intend to take in order to prevent inappropriate curtailments.” [emphasis added]

Implementation prior to Jan 2014 ─SI 147/2011 & other legislation. ─Inherently discretionary obligations in the Directive: “appropriate” and “subject to safety, reliability” etc. ─Optimism re target and commitments limited to achieving targets. ─Failure to include Article 16(1). ─Failure to provide streamlined procedures. ─Incomplete implementation of Article 16(2)?

Consequences of Failure - Jan 2014 ─Commission instituted proceedings, noting that while there was a “considerable amount of legislation” already adopted, remaining issues were: 1)National target for 10% of transport by renewables; 2)Streamlining of administrative procedures; 3)The management of grid access for electricity from renewable sources; and 4)Sustainability criteria for biofuels. ─Some failings fell within key Commission Priorities (1, 3 and 4).

New legislation - SIs 482 & 483/2004 ─SI 147/2011 repealed and more complete transposition provided for: ─New wording appears key in Regulation 4(5) which reads: “CER shall take the appropriate steps required by Article 16 of the Directive.” ─This reflects wording of Article 16(1) although the qualification of “appropriate” may be too widely applied.

Remaining Questions ─Is there sufficient transparency around the Irish authorities’ implementation for compliance with EU law and the correct implementation of the Directive? ─Are there Decisions, clearly published and consulted on, which must now be taken by CER? ─What does appropriate mean? ─What was discussed between the Commission and the Dept/CER in the background to the litigation? ─What does the CER plan to do?

f Thank You!