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. 

According to the proposal, each member state should increase its share of renewable energies - such as solar, wind or hydro - in an effort to boost the EU's share from 8.5% today to 20% by 2020. A 10% increase in biofuels use in transport fuel consumption is included within the overall EU objective.

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):

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) outlining their strategies to the Commission by 31 March 2010. The plans will need to be defined along three sectors: electricity, heating and cooling and transport.

While only the 2020 target is legally binding, the Commission has indicated that it could pursue earlier legal action in cases where a member state's progress is so limited that it is clear the final target cannot be reached.

Virtual power flows

The Commission's proposal allows for the virtual trade in renewable energies involving Guarantees of Origin (GOs), which certify the renewable orgin of electricity produced. This provision already features in existing EU renewables legislation, but has hardly been utilised, according to the Commission.

Under the system, member states may invest in renewable energy production in another member state in exchange for GOs, which can be counted towards the renewables target. But the Commisson has attached the condition that a member state must have already reached its own interim target before being allowed to receive investments and transfer GOs to another member state.

Physical trade in renewable energies is permitted and encouraged in the EU's internal market, but currently accounts for less than 6% of the electricity traded between EU member states, according to the European Renewable Energy Council (EREC).

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 of energy from renewable sources in all new or refurbished buildings", and the text makes provisions for the mutual recognition of certifications 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 constructions, while local and regional administrative bodies should be required "to consider the installation of equipment and systems 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".

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 "priority 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.