EC Proposes New Clean Energy Measures, Revises Renewables Directive

The European Commission (EC) presented a package of clean energy measures on 30 November. The “Clean Energy for All Europeans” legislative proposals cover energy efficiency, renewable energy, electricity market design, security of electricity supply and governance rules for the Energy Union.

By mobilising up to EUR 177 billion euros of public and private investment per year from 2021, the package can generate up to 1% increase in GDP over the next decade and create 900,000 new jobs, the Commission said.

The Vice-President for Energy Union, Maroš Šefčovič said: “Today’s proposals touch upon all clean energy related sectors: research and innovation, skills, buildings, industry, transport, digital, finance to name but a few. These measures will equip all European citizens and businesses with the means to make the most of the clean energy transition.”

Regarding renewable energy, the European Commission proposed a revised Renewable Energy Directive which will, together with the proposals on the New Electricity Market Design and governance, set a regulatory framework that leads to investor certainty and allows a level playing field for all technologies without jeopardising our climate and energy targets.

In order to better accommodate the rising share of renewables, wholesale markets have to further develop and in particular provide adequate rules allowing shorter term trading to reflect the necessities of variable generation. Renewables producers will be able to earn revenues from the market, including system service markets that are required to maintain grid stability and security. By introducing trading closer to the time of delivery well-integrated short-term electricity markets will also reward flexibility in the market both for generation, demand or storage, according to the EC.

Renewable energy will be increasingly market-based, untapped potential needs to be exploited, and certainty and visibility for investors ensured. New rules will allow renewable electricity generators to earn increasing shares of their revenues from the market.

The clean energy package will also guide the design for national support by setting out framework principles to facilitate a cost-effective, market-oriented and Europeanized approach, according to the Commission. These principles include cross border opening of support schemes, non-retroactivity and long term visibility for the support.

Furthermore, the Commission said its proposals will set a regulatory framework that allows a level playing field for all technologies without jeopardising climate and energy targets. The new regulatory framework will make sure that renewables can participate fully in the electricity market, but also that the market-related provisions do not discriminate against renewables.

Priority dispatch will remain in place for existing renewable installations, small-scale renewable installation and projects demonstrating innovative technologies. Other installations, independent from the technology applied, will be subject to non-discriminatory third-party access rules. In addition, curtailment of renewables should be done last, the EC said.