EU renewable energy policy[fr][de] 

Renewable energies such as wind power, solar energy, hydropower and biomass can play a major role in tackling the twin challenge of energy security and global warming because they are not depletable and produce less greenhouse-gas emissions than fossil fuels. 

Since the energy crises of the 1970s, several industrial nations have launched programmes to develop renewable energy solutions, but the return of low oil prices prevented renewable energies from picking up on a large commercial scale.

Renewable energies today cover 13.1% of global primary-energy supply and 17.9% of global electricity production (IEA, 2007 ). The IEA's World Energy Outlook 2006 foresees in its Alternative Policy Scenario that the share of renewables in global energy consumption by 2030 will remain largely unchanged at 14%. Renewables in electricity generation are expected to grow to around 25%, according to the IEA.

Past EU policy developments include:

• 1997: Commission White Paper 'Energy for the future: renewable sources of energy - White Paper for a Community Strategy and Action Plan' , sets EU target of increasing the share of renewable energy to 12 per cent of total energy consumption by 2010. 
• 2001: EU adopts the Directive on the Promotion of Electricity produced from Renewable Energy Sources ('Renewables or 'RES-E" Directive'). The directive sets an EU-wide target of 21% of renewables share in electricity production by 2010.
• 2003: EU adopts the Biofuels Directive  setting "reference values" of 2% market share for biofuels in 2005 and 5.75% share in 2010.
• 2006: European Parliament calls for 25% target for renewables in EU's energy consumption by 2020.
• 2007: Commission presents "Renewable Energy Roadmap " as part of its "energy-climate change" package.  

Member states' targets

On 23 January 2008, the Commission put forward a proposal for a new Directive on renewable energies to replace the existing measures adopted in 2001. EU governments and the European Parliament reached a broad agreement on the proposal on 9 December 2008, which was then adopted by the Parliament in a plenary vote on 17 December (EurActiv 09/12/08).

According to the text, each member state should increase its use of renewable energies - such as solar, wind or hydro - in a bid to boost the EU's share from 8.5% of the bloc's energy mix today to 20% by 2020. A 10% use of 'green fuels' in transport is also included within the overall EU objective (EurActiv 05/12/08).

To achieve the targets, every nation in the 27-member bloc is required to increase its share of renewables by 5.5% from 2005 levels, with the remaining increase calculated on the basis of per capita gross domestic product (GDP):

Interim targets

The Commission also proposes a series of interim targets, in order to ensure steady progress towards the 2020 targets.

• 25% average between 2011 and 2012;
• 35% average between 2013 and 2014;
• 45% average between 2015 and 2016, and;
• 65% average between 2017 and 2018. 

EU countries are free to decide their preferred 'mix' of renewables in order to take account of their different potentials, but must present national action plans (NAPs) based on an 'indicative trajectory' to the Commission by 30 June 2010, followed by progress reports submitted every two years. The plans will need to be defined along three sectors: electricity, heating and cooling, and transport.

The compromise agreement eventually rejected a regime whereby member states would have faced financial penalties for failing to reach interim targets towards the 2020 goal.

Brussels reserves the right to enact infringement proceedings if states do not take 'appropriate measures' towards their targets, meaning the decision to take legal action will be at the Commission's discretion rather than based on strict criteria.

Flexibility with national support schemes

Member states will be permitted to link their national support schemes to those of other EU states, and will be allowed under certain conditions to import 'physical' renewable energy from third-country sources such as large solar farms in North Africa. 'Virtual' imports, based on renewable energy investments in third countries, cannot be counted towards national targets, however.

A system of open trading in renewable energy certificates between EU member states, favoured by EU electricity market traders and large electric utilities, was rejected in favour of a system whereby one member state can sell or trade excess renewables credits to another, based on statistical values.

These so-called 'statistical transfers', which can only take place if the selling member state has reached its interim renewables targets, can also be applied in cases where member states cooperate on joint projects.

Buildings and district heating

While the focus of the directive is on the promotion of large scale renewable energy installations, member states are nevertheless requested to use "minimum levels for the use of energy from renewable sources in buildings". Moreover, the text makes provisions for the mutual recognition of certification for technicians who install renewable technologies in buildings (see also our LinksDossier on EU buildings legislation). 

Architects and planners are also to benefit from member state 'guidance' when planning new construction projects, while local and regional administrative bodies should be recommended to "ensure equipment and systems are installed for the use of heating, cooling and electricity from renewable sources, and for district heating and
cooling when planning, designing, building and refurbishing industrial or residential areas". In particular, they should be encouraged to include heating and cooling from renewables in the planning of city infrastructures.

Grid access

Many smaller producers of renewable energy argue that a lack of transparency and blocked access to energy grids are preventing them from competing on the market (EurActiv 06/07/07).

The text seeks to address the problem by requesting member states to ensure that the transmission and distribution system operators provide "either priority access or guaranteed access to the grid-system of electricity produced from renewable energy sources".

Senior EU officials have admitted that the 20% target would be challenging to meet, considering that Europe as a whole was only meeting 6.4% of its overall energy needs with renewables in 2007. Moreover, he pointed out that the figure was largely made of hydropower, an energy source that has limited additional potential due to geographical constraints.

"We are supportive of a general increase in the use of renewable energy", said Ernest-Antoine Seillière, president of BusinessEurope, the EU employers' organisation. "But meeting this binding target must not threaten an energy supply at competitive prices. Implementation must leave all other energy options open, in particular the use of nuclear energy."

The European electricity industry association, Eurelectric, is much more sceptical regarding targets. "The EU should avoid command-and-control measures such as binding energy targets or requirements to use only certain technologies," it said, questioning the "wisdom and the realism of the proposed dramatic compulsory increase in the share of RES (renewables) in the energy mix by 2020".

The European Renewable Energy Council (EREC) voiced concerns regarding implementation, saying that "setting an ambitious target does not automatically deliver the results". "We need to go ahead at full speed in implementing the legislative framework, which will guarantee that renewable energy in all its sectors and potentials will be exploited," said EREC President Arthouros Zervos.

A report produced in January 2007 by Greenpeace and EREC predicts that renewable energy can deliver half of the world's primary energy needs by 2050, if the right policies are taken.

Please see also EurActiv's related coverage of the proposal and further stakeholder reactions.