SeaCoop cvso
SeaCoop
SeaCoop cvso is a Belgian social enterprise cooperative established in April 2022.
ID: 668802652917-16
Lobbying Activity
Response to Commission Recommendation and guidance on design elements of renewable energy auctions
19 Feb 2024
Renewable Energy Communities (RECs) have a growing role, also in big offshore tenders. Pre-qualification and non-price award criteria are important for more efficient offshore developments achieving more easily affordable and clean energy (SDG 7), economic growth (SDG 8), responsible production and consumption (SDG 12), Climate Action (SDG 13), life below water (SDG 14). Affordable and stabilizing energy prices foster the energy transition via more confidence in transitioning to heat pumps and electric vehicles. Minimal citizen participation pre-qualification and award criteria provide a more even level playing field. Otherwise consortia are not inclined to include citizen participation. The Belgian Government is setting a 1% minimal citizen participation of the capex amount and additional points if targets are met. The citizens can however not bear some of the risks on long term commitment for energy offtake and guaranties for bank financing. Examples/barriers faced: 1) No incentives for consortia to include citizens in the ownership of the consortium 2) Risks of long term offtake contracts for energy supply towards end users. Consumers can change supplier, whereas corporate offtakers can give more guarantees to consortia. Cooperative suppliers risk very important losses in case of longer period low market tariffs. 3) Banks look differently to PPAs when citizens conclude them what possibly increases external financing. 4) RECs only collect equity contributions from citizens when projects are certain. Equity is needed at financial close, and collecting equity takes more time than that. RECOs 1) Installing points on citizen participation that compensate the burden for consortia to include citizens as shareholders. These points should make a difference versus the points on pricing 2) Carve out possibilities for long term PPAs. 3) Financial bankability of long term offtake contracts: smart structuration of guarantees & termination options. 4) Guarantees for REC acquisition bridge financing 5) Guarantees for REC project financing to secure the best external financing from banks.
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