Lobbying Activity
Meeting with Barbara Glowacka (Cabinet of Commissioner Kadri Simson), Thor-Sten Vertmann (Cabinet of Commissioner Kadri Simson) and
6 Jun 2023 · Accelerating Renewable Energy Deployment in Europe
Response to Revision of the Renewable Energy Directive (EU) 2018/2001
21 Sept 2020
The start of an overall review process of the energy and climate legislation, including the 2018 Renewable Energy Directive (“REDII”), aimed at ensuring that the EU renewable energy policy effectively continues to contribute to the cost-effective deployment of renewable energy sources is welcome. This initiative is an attractive opportunity to improve certain elements of the existing regulatory framework to ensure that renewable energy sufficiently contributes to the achievement of the higher EU climate ambition in the changing context of the European Green Deal (EGD).
However, we believe that the ongoing assessment on the REDII should be part of a wider review process of energy regulations also including the Internal Market for Electricity Directive and Regulation, along with the EU competition law. The EU regulatory framework needs to take a holistic approach that considers the interdependence between different markets and other government energy policies while fostering both demand and competitive supply of low-carbon solutions. The EU should review its state aid policies and the market liberalization and competition policies established in the 1990s and 2000s as the deep decarbonization of the power system cannot happen in the current market environment.
Falck believes that the ongoing impact assessment should look at a possible combination of different options: non-regulatory measures (option 2), raising the ambition level of the REDII targets and subtargets in line with the 2030 Climate Target Plan (option 3), and amending REDII to translate into legal measures the actions proposed in other energy strategies of the EGD (option 4).
Key elements of the REDII provisions that should be considered according to Falck are listed below and detailed in the attached document.
• Increase the 2030 target for renewable energy. However, raising the targets makes sense only and exclusively if the market conditions will be set for their efficient and effective development. First of all, although it is not the subject of this consultation, we would like to underline the need for a revision of the market design to provide for a full integration of renewables, storage and consumption units.
• Increase in electricity consumption, with the introduction of specific mechanisms aimed at providing an obligation for both public administration and end-consumers to acquire renewable energy.
• Identification of areas unsuitable for the installation of new renewable plants.
• Foster electrification and renewable fuels such as green hydrogen. Specific targets for renewable hydrogen shall be introduced in the transport and in the heating and cooling. In addition, specific sub-targets for so called “hard to abate” sectors. (e.g. steel production, aviation and maritime) may also be considered in the upcoming revision of the RED to further incentivize and speed-up deployment and adoption of renewable energy in specific sectors and industrial segments.
• Additional measures for corporate power purchase agreements (PPAs) aimed at providing more extensive safeguards for both PPA contracting parties, as well as streamlining and shortening both the permitting and grid connection processes.
• Streamlining the permitting process for new and repowered renewable energy plants.
• A well-functioning and more transparent framework for Guarantees of Origin (GOs). The revision of the GO system shall also cover renewable hydrogen, thus, ensuring direct compatibility between renewable support schemes and GOs to encourage the development of an EU renewable hydrogen market.
• In addition, EU carbon pricing will need a restructuring to cover all sectors and increase in a progressive and predictable manner.
Read full responseMeeting with Riccardo Maggi (Cabinet of Executive Vice-President Frans Timmermans)
5 Jun 2020 · Climate transition, 2030 targets, decarbonisation paths for the electricity industry