[EU]
EU Energy Legislation
EU directive on the liberalisation
of electricity 1997
Within this document the liberalisation of the electricity sector within
the EU is obviously the main topic. This piece of legislation also introduced
some rules on the treatment of renewables to avoid distortion of trade
and competition in electricity generated from renewable sources within
the new liberalised market. The mechanisms introduced to support this
are compatible with EU law. Member states have developed aid schemes backed
up by accompanying measures taking the following forms:
[1] "Renewable", "Green" or "Non-fossil fuel"
levy which all consumers in the state applying the measure must pay irrespective
of whether they purchase electricity in that state.
[2] "Green Certificates" which allow consumers to purchase "shares"
of their electricity requirements from renewable sources.
[3] Compensation payments into a fund for the development of renewables.
[4] A guaranteed price which buyers are obligated to pay.
[5] Non-financial measures
EU Directive on the promotion
of electricity from renewable energy sources in the internal electricity
market 2001
This directive concentrated solely on renewable energy within the single
market. It identifies that renewable energy is an essential part of the
package of measures that is needed to comply with the Kyoto agreement,
and that the net environmental effects of different renewable energy sources
should be taken into account when implementing different measures. The
objectives of the EU with respect to renewable energy are as follows:
- 12% of gross domestic energy consumption by 2010 to be from renewable
energy
- 22.1% share of electricity from renewable energy sources in the total
community electricity consumption by 2010
- Reduce CO2 emissions by 8% in 2010 compared to 1990 levels
The setting of national targets for each member state in the medium term
is necessary as well as detailed plans for the action necessary to achieve
these goals.
Certification should be introduced to give renewable energy a guarantee
of its origin. This will aid trade in renewable electricity and facilitate
the consumer choosing renewable energy over conventional methods.
A Market in the EU for renewable energy would stimulate adequate growth
in renewable energy. This market would have to take the varying characteristics
of the different renewables into consideration, be efficient and simple,
and include sufficient transitional periods to sustain the interest of
investors and avoid stranded costs. It is a requirement that the member
states take action to ensure that electricity from renewable energy gets
the priority on the transmission and distribution systems.
Each member state will have to adhere to some guidelines:
"No later than one year after entry into force of this directive
and every five years thereafter, Member states shall adopt and publish
a report setting national targets for future consumption of electricity
from renewable energy sources. Such targets shall identify the national
objective for future levels of consumption of electricity from renewables,
in KWh consumed or as % of electricity consumption, annually for the next
10 years."
The member states will also be required to publish a report on what action
is required to reduce barriers to increasing the production of renewable
energy.
