CLEAN ENERGY FOR ALL EUROPEANS

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1 Energy Cooperatives and Community Energy delivering CLEAN ENERGY FOR ALL EUROPEANS Paula ABREU MARQUES Head of Unit, C.1 European Commission DG ENERGY

2 CONTEXT October 2014: European Council Agreement on Climate and Energy objectives % Greenhouse Gas Emissions 20% Renewable Energy 20 % Energy Efficiency % Greenhouse Gas Emissions 27 % Renewable Energy 27%* Energy Efficiency Global Leadership Commission's 10 Priorities Ambition to Become Global Leader in Renewables 2 #EnergyUnion

3 CONTEXT More than 1 million people work in the renewable energy sector Reduced dependence on fossil fuels and energy imports: cut fossil fuels use by the equivalent of Poland's entire annual energy consumption Renewables are becoming affordable: 80% decrease of PV panel prices in 5 years European leadership: in countries have renewable energy targets With an estimated renewable energy share of 16.4% of gross final energy consumption in 2015 the EU is on track to meet the 2020 target 3 #EnergyUnion

4 CLEAN ENERGY FOR ALL EUROPEANS energy efficiency first global leadership in renewables a fair deal for consumers 4 #EnergyUnion

5 RED II PROPOSAL : MAIN DRIVERS Investor uncertainty Cost-effective deployment Absence of functioning markets Need to update regulatory framework Citizen buy-in Sufficient investment signals from markets? Framework for support schemes post- 2020? Sustainability of biofuels post- 2020? Not for H&C and transport sector Not for technology and geographical potential of RES-E No optimal allocation of RES-E across EU In transport and H&C (external costs) No incentives for district heating systems to become more efficient No national targets post No REStransport target post-2020 Variable climate performance of food-based biofuels Risk for small scale investors in market-based renewables support Lack of consumer engagement in the energy transition Lack of customer information Bioenergy sustainability 5 #EnergyUnion Climate performance of forest biomass for energy Environmental impacts of biomass used in heat and power End use efficiency of biomass electricity Administrative costs due to different national sustainability criteria

6 RED II PROPOSAL : SECTORIAL APPROACH Reaching >27% RES in #EnergyUnion

7 RED II PROPOSAL : STRUCTURE Art 1-2 Updated objectives and definitions Art Consumers: GOs and self-consumers Art 3 Binding Union target Art Heating and Cooling Art 4-6 Electricity and support Art 25 Transport mandate Art 7-14 Target calculation and joint projects Art Bioenergy sustainability Art Admin procedures and training Art Implementing measures, delegation, repeal 7 #EnergyUnion

8 ART. 22 : ENERGY COMMUNITIES What are EU energy communities? 2500 initiatives EU-wide 75% in AT, DE, DK Most of them small-scale => specific issues LCOE comparable with utilities In 2030, they could represent around 20% of wind and solar capacity 8 #EnergyUnion

9 ART. 22 : ENERGY COMMUNITIES Why act at EU level? +50% of wind and PV between 2020 and 2030 : need local acceptance to develop most profitable sites EU priorities : provide a fair deal for consumers + citizen at the core of the Energy Union mobilise private capital 9 #EnergyUnion

10 ART. 22 : ENERGY COMMUNITIES How to empower energy communities? Propose a definition based on: 10 #EnergyUnion Company size Open membership and democratic member control Economic participation of local citizens Critical mass Facilitate their integration in the energy system Specific rights Tenders Consistent approach with retail market proposal (article 16)

11 THANK YOU! Follow #CleanEnergyEU #EnergyUnion

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