The German experiencies: The framework of the EU energy policy and the Energiewende

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framework of the EU energy policy and the Energiewende

1 German-Brazilian Workshop on Renewable Energies & Energy Efficiency The German experiencies: The framework of the EU energy policy and the Energiewende Prof. Dr. Joh.-Christian Pielow Institut für Berg- und Energierecht

2 Agenda I. Development of the European Energy Policy Energy & market Energy & environment II. The German Energiewende of 2011 Political targets Challenges III. Outlook: The Energiewende in the light of the EU law & policy Pielow Brazilian-German Workshop Campinas 19. March

3 European Energy Policy Pielow Brazilian-German Workshop Campinas 19. March

4 European Energy Policy 1950: Schuman-Plan: Integration of the coal & steel industries mainly of France and Germany: Make peace in Europe! 1951/52: European Coal & Steel Community (ECSC), Paris (expired after 50 years in 2002) 1957: Treaties of Rome o o European Economic Community (EEC) later on EC (1992), then EU (2009) European Atomic Energy Community (EAEC or EURATOM) Framework for the peaceful use of nuclear energy and co-operating in R&D ; harmonization of safety rules Pielow Brazilian-German Workshop Campinas 19. March

5 Energy in the EEC- & later EU-Treaty No reference to Energy in the Treaty no specific European policy Member States insist on their energy sovereignty But: Applicability of the general rules of the Treaty Common Market / Internal Market and fundamental freedoms Competition (cartel law, abuse of dominant positions, merger control) and state aid rules Pielow Brazilian-German Workshop Campinas 19. March

6 Energy in the EEC- & later EU-Treaty After Lisbon 2009: Treaty on the Functioning of the European Union (TFUE) Enery as a shared competence (art. 4 TFEU) of the Union... the Union and the Member States may legislate and adopt legally binding acts in that area. The Member States shall exercise their competence to the extent that the Union has not exercised its competence.. new title XXI (art. 194 TFUE) energy Main objectives: Functionning of the energy market; security of energy supply; promotion of energy efficiency & RES; interconnection of energy networks; energy solidarity Broad policy competencies, but: EU measures shall not affect a Member State's right to determine the conditions for exploiting its energy resources, its choice between different energy sources and the general structure of its energy supply 6

7 European secondary law Energy & Market Since 1986: Legislation on the Internal Energy Market Lastly: Third legislative package on the EU Energy Market (2009), inter alia strengthened network unndling (TSO) Interconnection of cross-boarder grids and network investment planning Strenghtening of national regulatory agencies and cooperation on the EU level Completion of the EU Internal Market for Energy by 2014? Pielow Brazilian-German Workshop Campinas 19. March

8 European secondary law Energy & Environment (Climate Change Policy) Political target: until 2020 Promotion of Renewable Energies: Renewables Directive 2009/28/EC National targets (Germany: 18 % until 2020) No binding force as to promotion methods & instruments! EU Emission Trading System: ETS Directive 2003/87/EC Phase III ( ) with integration of air transport (?), setting of an overall EU cap, move from allowances to auctioning Energy Efficiency & Saving: Energy Efficiency Directive 2012/27/EU No binding efficiency targets But: Obligation of MS to esablish energy saving schemes, with efficiency measures public sector to lead by example & consumer information Pielow Brazilian-German Workshop Campinas 19 March

9 The German Energiewende of 2011 Pielow Brazilian-German Workshop Campinas 19 March

10 The German Energiewende of 2011 Energiewende follwing to the Fukoshima disaster in spring 2013: The attempt to produce electricity mainly on the basis of RES Pielow Le energie rinnovabili: La Germania Milano / Univ. Bocconi, 11. marzo

11 The German Energiewende of 2011 Main (political) targets according to the Energy concept 2050 for an Environmentally Sound, Reliable and Affordable Energy Supply Phasing-out of nuclear power by 2020 at the latest Raising the amount of RES; share of renewable energies in power generation: 35% in % in % in % in 2050 at the latest. Reduction of greenhouse gas emissions of 55 % by 2030, 70 % by 2040 and % by 2050 Reducing primary energy consumption by 20% in 2020 and by 50% in 2050 (compared with 2008) Pielow Le energie rinnovabili: La Germania Milano / Univ. Bocconi, 11. marzo

12 The German Energiewende of 2011 Pielow Brazilian-German Workshop Campinas 19 March

13 The German Energiewende of 2011 Pielow Brazilian-German Workshop Campinas 19 March

14 The German Energiewende of 2011 Actual Challenges (1) Intense modification of energy supply. Reasons: Transformation of central energy supply with big power plants into decentralized supply. Integration of more volatile renewable energies (wind, solar) and, at the same time, lack of electricity storage facilities require expansion and modification of the (electric) energy grids Transport Grids: Need of grid-expansion of about km ; extra-high voltage lines (380 kv) as overlay grids (Electric highway) Problem i.a.: Lack of acceptance by the affected public (in contrast to the general consent to the energy targets) Connection of offshore-windparks in the North & the Baltic Sea (~ 17 bill. ). Pielow Brazilian-German Workshop Campinas 19 March

15 The German Energiewende of 2011 Distribution Grids: Actual challenges (3): Integration of more and more decentralized power generation (former consumers as prosumers ) Grid extensions? (estim km) Integration of Smart Grids, Smart Metering, Smart Markets In particular: Burden & shifting of costs!? Producers Network Operators (TSO/DSO) industrial / household comsumers? Wholesale electricity prices are decreasing (due to growing RES) but: Consumer prices are increasing continously Pielow Brazilian-German Workshop Campinas 19 March

16 The German Energiewende of 2011 Pielow Brazilian-German Workshop Campinas 19 March

17 The German Energiewende of 2011 Legislation (In particular RES & among others) Act on the Priority of RES (Gesetz über den Vorrang Erneuerbarer Energien EEG) 2008 with latter amendments Act on the Promotion of Combined Heat & Power (Gesetz zur Förderung der Kraft-Wärme-Kopplung) 2008 with latter amendments Act on the Promotion of RES in the Heating Sector (Gesetz zur Förderung erneuerbarer Energien im Wärmesektor EEWärmeG) 2009 with latter amendments Grid extension & speed-up of planning procedures: Energieleitungsausbaugesetz (EnLAG) 2009 & Netzausbaubeschleunigungsgesetz (NABEG) 2011 Most recently (Dec. 2012): Articles 17a & ss. of the Energy Industry Act (Energiewirtschaftsgesetz EnWG): Hightension grid connections of offshore-windparks (planning, financing & responsibility in case of delays) Pielow Brazilian-German Workshop Campinas 19 March

18 IV. Outlook EEG 2013: Recent (economic & legal) Challenges: Impacts of increasing RES production on the electricity wholesale & retail markets i.a.: cross subsidies of priviledged RES producers (Prosumers) by poor consumers and of rich (= sunny / windy ) regions by poor Länder Privileges for industrial energy intensive consumers by exemption from the cost-shifting & networks access fees in line with art. 107 TFUE? Commission initiated inquiry Germany s (increasing) promotion of RES vs. Internal Energy Market & free movement of goods? Feed-in- & pay-for-system and financial / budgetary Constitution: A forbidden special fee (Sonderabgabe) vs. general taxes? Need of a Masterplan or new Market Design! Pielow Le energie rinnovabili: La Germania Milano / Univ. Bocconi, 11. marzo

19 IV. Outlook Reform proposals: Main target: Disconnect the promotion of RES and increasing consumer prices because of fixed feed-in tarriffs let the market decide on the use of RES! A. Merkel: Reduce the privileges for energy intensive industries! Introducing a cap / cut for RES prices ( Strompreisbremse )? Breach of legitimate expectations (bona fides)? But: requirements of the EU Internal Market! Replace the EEG by other methods of RES promotion, in particular: quota system the Scandinavian way? European harmonization?? Pielow Brazilian-German Workshop Campinas 19 March

20 Many thanks for your attention! Project sponsorship by: Layout: Coporate Design Ruhr-University Bochum 20

Table of Contents. The Authors 3. List of Abbreviations 17. Acknowledgements and Preface 19. General Introduction 21. Chapter 1. General Background 21

Table of Contents. The Authors 3. List of Abbreviations 17. Acknowledgements and Preface 19. General Introduction 21. Chapter 1. General Background 21 The Authors 3 List of Abbreviations 17 Acknowledgements and Preface 19 General Introduction 21 Chapter 1. General Background 21 1. GEOGRAPHY AND POPULATION 21 2. LEGAL AND POLITICAL STRUCTURE 22 I. Germany