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Policy Department Renewable Technologies

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Policy Department Renewable Technologies ( policy-department-renewable-technologies )

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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ The regulators agree that upgraded and smarter electricity grids and energy efficiency measures are keys to fighting climate change and aim to ensure value-for-money investments in grids so that the RES capacity can be connected. According to the Council of European Energy Regulators (CEER), priorities will be the development of modern smart networks, the integration of new and best available technologies and energy efficient measures” [EER 2010]. In general, sufficient infrastructure and interconnections are a key issue in deploying renewable energy sources. The 3rd package obliges the NRAs and TSOs to cooperate on a regional basis and to make both national and EU-level plans such as the non-binding ten- year network development plan. This planning should contribute to a more structured approach to integrating RES on the European and regional level. The 'Europe 2020 strategy for smart, sustainable and inclusive growth' was published in the beginning of March 2010 and should provide guidelines for the future work of the Commission. In the strategy the Barroso College makes a commitment of presenting an initiative to “upgrade Europe's networks, towards a European supergrid, "smart grids" and interconnections in particular of renewable energy sources to the grid” [European Commission 2010b]. Implications of the Treaty of Lisbon It should be underlined that there is no extensive European funding mechanism yet and that in the debate for the new budgetary perspectives more money should be allocated to clean energy, now that there is a clear supranational competence on this field with the Treaty of Lisbon. The Treaty of Lisbon entered into force on 1 December 2009 and creates the legal basis for European energy policy as regards internal market and environmental matters. The Treaty elevates energy into an area of shared competence between the Union and the member states (Article 4 TFEU). A separate chapter on energy (Article 194 TFEU) mandates overall EU energy policy to focus on the establishment and functioning of the internal market and on preserving and improving the environment. Within this context, EU energy policy should aim at four explicitly mentioned goals: functioning of the energy market, security of energy supplies, energy efficiency and RES, and interconnection of energy networks. The Treaty of Lisbon greatly extends the application of the ordinary legislative procedure, thus enhancing the European Parliament’s powers of decision. This constitues an efficiency gain in terms of transaction costs. There will, however, be two notable exceptions to these new provisions. First, the Treaty of Lisbon leaves to member states the right to determine the conditions for exploiting its energy resources, as well as the critical choice between different energy sources and the general structure of their energy supplies. Second, fiscal measures (e.g. energy taxes) will continue to be subject to unanimity. These two provisions can be regarded as safeguards for national sovereignty in the field of energy. Nevertheless, it should be noted that member states’ competences with regard to their national energy mix is tempered by both international and European binding engagements. Harmonising renewables support schemes While gaining significant experience in the EU with renewables support schemes, competing national schemes were healthy at least during a transition period. Competition among schemes has given the EU greater variety of solutions from which to choose. As long as volumes remained relatively low, cross-border externalities remained limited. IP/A/ITRE/ST/2009-11 & 12 81 PE 440.278

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