1. Hydropower Seminar Brussels, 2nd October 2009
EU renewable energy policy and legislative framework – RES Directive and the NREAP
Hydropower Seminar
Brussels, 2nd October 2009
Andrea Hercsuth
DG TREN, Regulatory Policy and Promotion of Renewable Energy
EUROPEAN COMMISSION

2.  Content EU renewable energy policy background and instruments
The implementation of Directive 2001/77/EC
The new legislation: Directive 2009/28/EC
Other aspects to be taken into account
Further steps
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

3.  EU renewable energy policy background and instruments
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

4. Energy efficiency and renewable energy sources
Bases of the European Energy Policy
Climate change
Energy efficiency and renewable energy sources
security and continuity of energy supplies
tiveness
Competi-
Drafting, negotiating and finalising the text of the Directive were obviously crucial steps in creating the right framework for renewable energy. But they are not the end of the story.
A range of actions are needed – by the Commission and by Member States, to ensure that the framework is implemented correctly; that renewable energy develops appropriately and plays its role in the broader setting of energy efficiency, environmental, climate change and economic policy overall. 4

5. absence of legislative framework for heating and cooling
European Renewable Energy (RES) policy
Policy background
Green Paper in 1996, then White Paper in 1997 (12% RES by 2010)
Directive 2001/77/EC national targets for RES electricity by 2010 (EU target: 21%)
Directive 2003/30/EC national targets for RES in transport by 2010 (EU target: 5,75%)
Directive 2009/28/EC EU and national binding overall RES targets and minimum transport target (EU targets: 20% and 10%)
absence of legislative framework for heating and cooling
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

6. The implementation of a directive – Dir. 2001/77/EC
Policy background 
The implementation of a directive – Dir. 2001/77/EC
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

7. The Renewable Electricity Directive 2001/77/EC
The Renewable Electricity Directive 2001/77/EC
Sets indicative national targets for renewable electricity shares by 2010 – Member States have to confirm targets; EU target 21%
Requires “appropriate steps to encourage greater consumption of electricity produced form renewable energy sources… in conformity with the national indicative targets ”
Introduces the possibility of using support schemes in Member States (without prejudice of Articles 87 and 88 of the Treaty, however could have effect of restricting trade – based on Art. 6 and 174 of the Treaty) – possibility for Commission to propose Community framework
Requires the introduction of guarantees of origin – enabling producers to demonstrate origin of electricity
Requires evaluation of administrative procedures with the view to reducing barriers
Requires clear rules on grid issues (connection cost sharing, priority dispatch)
Requires periodical reporting of Member States and Commission on implementation and progress 7

8. Progress in electricity from RES
Progress in electricity from RES
RES-E share of 15,7% (2006) - up from 14,5% in 2004
2010 RES-E target: 21% still significant additional effort needed RES-E growth driven by a small number of Member States and technologies
Bottlenecks:
Administrative barriers
Grid constraints
Low support in certain MSs
RENEWABLE ENERGY DIRECTIVE | 8 8

9. The new element of legislation: Directive 2009/28/EC
Policy background 
The new element of legislation: Directive 2009/28/EC
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

10. The Renewable Energy Directive
The Renewable Energy Directive
Sets mandatory national targets for renewable energy shares, including 10% renewables share in transport (also RES-E), in 2020
Requires National Action Plans
Introduces the possibility of statistical transfers, joint projects and joint support schemes between Member States and of joint projects between Member States and 3rd countries to provide flexibility to Member States in reaching their targets
Requires reduction of administrative barriers to the growth of renewable energy, improvements in provision of information and training and improves renewables’ access to energy grids
Creates a sustainability regime for biofuels

11. 
Target setting BE BG CZ DK DE EE IE EL ES FR IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE UK
49%
13%
16%
30%
18%
25%
20%
23%
17%
40%
11%
14%
34%
15%
31%
24%
38%
10%
2.2%
RES share in 2005
9.4%
6.1%
17.0%
RES share in 2020
5.8%
18.0%
3.1%
6.9%
8.7%
10.3%
5.2%
2.9%
32.6%
15%
0.9%
4.3% 0%
2.4%
23.3%
7.2%
Behind the targets is quite a complex methodological discussion. Targets are measured in terms of gross final energy consumption. This is partly for consistency with the existing directives and partly to remove the “anti renewables bias” contained in measuring in primary energy terms. However we continue to rely on Eurostat for the collection and calculation of the statistics – their’s is the most sold, objective and reliable approach available. (made even more so now that the energy statistics regulation enshrines energy statistics collection in law…).
In discussions with Member States it was agreed to cap aviation’s share of final energy consumption at the 2005 EU average, or 6.18% (or at 4.12% for Malta and Cyprus who are extremely dependant on aviation). For electricity, it was agreed that it is reasonable to use normalised data for wind and hydro power and also that, as with the existing directive, pumped hydropower should not be counted.
Importantly, energy used for heating and cooling will be measured and counted for the first time. This is important, as there is great scope for increasing the use of renewable energy in this sector. We also had to determine how best to calculated and count the renewable part of energy harnessed by heat pumps, and this too will be done by Eurostat.
Finally I should note that all the liquid biomass and biofuels used must qualify under the sustainability rules which I will explain later on.
TRANSPORT
From the beginning it was clear that whilst we need to provide flexibility to reach the overall 20% target, we also need to drive forward growth of renewables in the transport sector. Transport fuel consumption, including aviation, is forecast to grow faster than in any other sector; and with fossil fuel dependency at over 99%, this has major negative implications on our energy policy. We must break through in the struggle to reduce fossil fuel consumption in this sector.
In this calculation I would note that we encourage the use of electricity in cars by giving Member States a bonus towards the target. Similarly for the introduction of second generation biofuels. And of course, only biofuels which meet the sustainability criteria count.
20.5%
17.8%
16%
6.7%
28.5%
39.8%
1.3%
Based on 2005 starting point, recent progress and a balanced sharing of the effort, weighted by GDP/capita

12.  National Renewable Energy Action Plans
Required by June 2010 based on template adopted by Commission in C(2009)
Sectoral targets and estimated trajectory set by Member States
Adequate measures to achieve the targets
Support schemes
Administrative procedures, regulations and building codes
Information and training
Necessary electricity grid development
Environmental sustainability scheme for biofuels and bioliquids
Biomass policy
Planned use of joint projects and statistical transfers
Involvement of local and regional authorities in preparing NAPs and raising awareness
Provides policy stability for investment
RENEWABLE ENERGY DIRECTIVE | 12

13.  The content of the NREAPs (Annex VI)
Policy background
Summary of national renewable energy policy
Expected final energy consumption
Targets and trajectories (national and sectoral)
Measures for achieving the targets
Assessments
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

14. Flexibility mechanisms (1) – why are they needed?
Flexibility mechanisms (1) – why are they needed?
Potential %
Flat rate/ GDP %
Austria 39 34
Germany 16 18
Netherlands 13 14
Belgium
Greece 19
Poland 15
Bulgaria 23
Hungary 20
Portugal 31
Cyprus 11
Ireland 17
Romania 26 24
Czech Rep.
Italy
Slovakia
Denmark 33 30
Latvia 51 42
Slovenia 25
Estonia
Lithuania 36
Spain
Finland 43 38
Lux. 9
Sweden 48 49
France
Malta 6 10 UK
A third “cooperation mechanism” between Member States is where they actually join their support mechanisms… 14

15. Flexibility mechanisms (2) – the instruments
Flexibility mechanisms (2) – the instruments
Fair distribution Efficiency
Statistical transfers between Member States if “seller” is on track to reach its targets (RES)
Joint projects between Member States (RES-E or RES-H&C)
Joint support schemes in MSs (RES)
Joint projects between Member States and 3rd countries (RES-E) – only if electricity consumed in the Community
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

16.  Administrative procedures
Ensure that national rules on authorisation procedures are proportionate and necessary:
Coordinated, defined responsibilities at national – regional - local level, transparent timetables
Comprehensive information on the processing of applications and on assistance available
Streamlined administrative procedures
Objective, transparent, non-discriminatory rules
Transparent, cost-related administrative charges
Simplified, less-burdensome procedures for small installations
RENEWABLE ENERGY DIRECTIVE | 16

17. Planning, building codes, information and training
Planning, building codes, information and training
Recommend the use of renewable energy sources and district heating – for planning of residential and industrial areas, city infrastructure planning
Measures to be introduced in building regulations and codes to increase RES share in buildings sector
Information support measures and awareness raising
Certification schemes or qualification schemes for installers, guidance for planners and architects
RENEWABLE ENERGY DIRECTIVE | 17

18. Challenges concerning the grid
Challenges concerning the grid
RES-E development and electricity grid
Administrative procedures
Technical adaptation
Financing
System design criteria:
Large amounts of variable generation (wind, solar, wave and tidal)
Increased distributed generation
Remote huge (and variable) resources
Energy efficiency and overall efficiency

19.  Grid infrastructure Requires Member States to
develop transmission and distribution grid infrastructure, intelligent networks, storage facilities, interconnections
to accelerate authorisation procedures for grid infrastructure
to coordinate approval of grid infrastructure with administrative and planning procedures
Cost sharing and cost bearing rules (transparent, objective, non-discriminatory) and their revision every two years
TSO and DSO to provide comprehensive and necessary information to new producer (cost estimation, timetables)
Also in 3rd package (10-year planning of TSOs, new objectives of regulators)
District heating and gas networks
RENEWABLE ENERGY DIRECTIVE | 19 19

20.  Grid operation Requires Member States to ensure
guaranteed or priority grid access
priority dispatch
appropriate grid and market related operational measures to minimise curtailment (system operator to report to Regulator)
Non discriminatory tariff charges
RENEWABLE ENERGY DIRECTIVE | 20 20

21.  Other aspects to be taken into account Policy background
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

22. Other aspects to be taken into account
Other aspects to be taken into account
Internal electricity market legislation
State aid rules – Guidelines on State Aid for Environmental Protection (2008/C 82/01)
Environmental legislation (Natura 2000, water framework directive, etc.)
Certifications and standards
RENEWABLE ENERGY DIRECTIVE | 22 22

23.  Further steps Policy background
Renewable energy policy has been an important element of EU energy policy since at least the 1997 White Paper.
We have two pieces of legislation in the area:
Electricity, setting national targets, removing administrative barriers and facilitating trade
Biofuels, where we also set targets and create a favourable regime for trade.
In the third part of the renewable energy sector, “heating”, which includes solar thermal, geothermal and biomass, we have developed standards and R&D, but not much else. As a result, the sector is lagging behind, although it has reached 9% of heating needs.
With this “patchy” development in mind, and mindful of the need for significantly better progress… the Commission published its energy package in January.

24. 
What is next?
Directive entered into force in June 2009, to be implemented by Member States by December 2010
In 2009 the EU Commission will:
report on biomass sustainability criteria
refine biofuel sustainability criteria
National Action Plans are due by June 2010
In following years the Commission will report on:
indirect land use change
on areas with low agricultural GHG emissions
sustainability verification methods
financial instruments
cooperation mechanisms
Biannual reporting by Member States (2011) and EU Commission (2012)
Drafting, negotiating and finalising the text of the Directive were obviously crucial steps in creating the right framework for renewable energy. But they are not the end of the story.
A range of actions are needed – by the Commission and by Member States, to ensure that the framework is implemented correctly; that renewable energy develops appropriately and plays its role in the broader setting of energy efficiency, environmental, climate change and economic policy overall. 24

25. Thank you for your attention!
For more information: 
Thank you for your attention! 25

26. 
Guarantees of origin
Purpose: proving to final customers the share or quantity of energy from RES in supplier's energy mix – no poof of target compliance
Requirements on information, format, period of use
Taken into account only once (same amount of energy) and only in one energy mix
MS may provide that no support granted
Accurate, reliable, fraud-resistant
MS may require indicate date of becoming operational after 25/06/2009
Drafting, negotiating and finalising the text of the Directive were obviously crucial steps in creating the right framework for renewable energy. But they are not the end of the story.
A range of actions are needed – by the Commission and by Member States, to ensure that the framework is implemented correctly; that renewable energy develops appropriately and plays its role in the broader setting of energy efficiency, environmental, climate change and economic policy overall. 26