Introduction to the Renewable Energy Directive

© Fraunhofer ISI
C o m p r e h e n s i v e C o u r s e o n E u r o p e ‘ s S u s t a i n a b l e E n e r g y
P o l i c y
P r o f . D r. M a r i o R a g w i t z , F r a u n h o f e r I S I
THE RENEWABLE ENERGY DIRECTIVE (RED)

© Fraunhofer ISI
Seite 2
 Historic development of renewable energy in the EU
 Key elements of the EU‘s renewable energy policy for 2020
 Renewable energy targets versus potentials of EU Member
States
 Costs and benefits of RES deployment
 The “Renewable Energy Sources“ Directive 2009 in detail
 Current status on renewable energy deployment and
Member State target achievement
Contents

© Fraunhofer ISI
Seite 3
States
Contents

© Fraunhofer ISI
Seite 4
Historic development of all RES-E in the EU-27
► Fast growth in “new RES-E”, hydropower stagnating
0
100
200
300
400
500
600
700
800
900
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Electricitygeneration[TWh/a]
'New' RES-E excl. hydro Small-scale hydro Large-scale hydro

© Fraunhofer ISI
Seite 5
0
50
100
150
200
250
300
350
400
450
1995 1997 1999 2001 2003 2005 2007 2009 2011
Production[TWh]
Bioliquids
Wind off-
shore
Geothermal
Photovoltaics
Biogas
Solid biomass
Wind on-shore
Historic development of new RES-E in the EU-27
► “New Renewables” in the EU-27 “New Renewables” in the EU-
► Dominating: Wind energy (in the EU-15) & Biomass (in the new member states)

© Fraunhofer ISI
Seite 6
Historic development of new RES-H in the EU-27
► Solid Biomass dominates RES-H sector.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
1995 1997 1999 2001 2003 2005 2007 2009 2011
Production[ktoe]
Geothermal Bioliquids
heat pumps solar thermal
Biogas Solid biomass

© Fraunhofer ISI
Seite 7
Historic development of new RES-T in the EU-27
► Biodiesel and Bioethanol dominate RES-T sector.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1995 1997 1999 2001 2003 2005 2007 2009 2011
Consumption[ktoe]
renewable
electricity
other liquid
biofuels
Bioethanol/Bio
-ETBE
Biodiesel

© Fraunhofer ISI
Seite 8
Historic and planned development of renewable
electricity in the EU
Source: NREAPs, Eurostat 2015

© Fraunhofer ISI
Seite 9
 Key elements of the EU‘s renewable energy policy for
2020
States
Contents

© Fraunhofer ISI
Seite 10
1997
• European Commission White Paper: Energy for the future: renewable sources of energy
• Laying down a strategy and action plan for the European Community
2001
• Renewable Energy Directive 2001/77/EC
• Target of 12% RES in gross inland energy consumption by 2010 for the EU-15
• Target RES-E share of 22.1%
2003
• Directive 2003/30/EC of the EU promoting the use of biofuels to decrease the environmental
impact of transport
• Ensuring a market placement of a minimum proportion of biofuels
2007
• Presentation of the Renewable Energy Road Map (COM(2006) 848 outlining targets for 2020:
• Endorsement of the 20-20-20 goals by the European Council
2009
• RES Directive 2009/28/EC, based on 20% RES target
• Specifying binding national renewable energy targets
Evolution of the EU‘s renewable energy
policy

© Fraunhofer ISI
Seite 11
 Renewable energy targets versus potentials of EU
Member States
Contents

© Fraunhofer ISI
Seite 12
2007/2008 – Proposals &
agreements at the European level …
10 January 2007 …
The Commission publishes the
“Renewable Energy Road Map”
as part of the integrated energy- & climate
change package “Energy for a changing world”
9 March 2007
The Council of the European Union agrees …
 to increase RES-share in EU energy mix up to 20% by 2020
 Binding overall RES target for each Member State
 National targets covering the whole energy sector.
 Minimum 10% biofuels in each Member State.
23 January 2008
The European Commission publishes the Proposal of the new RES directive
… the overall 20% target for RES was broken down into national RES targets for 2020 and a
corresponding new policy framework was proposed …
December
Green-X balanced scenario
0
200
400
600
800
1000
1200
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
RES-E-energyoutput[TWh/year]
Wind offshore
Wind onshore
Tide & wave
Solar thermal electricity
Photovoltaics
Hydro large-scale
Hydro small-scale
Geothermal electricity
Biowaste
Solid biomass
Biogas
Historical development Future development
Last steps: Towards the 2020 EU RES directive

© Fraunhofer ISI
Seite 13
Key elements of the 2020 RES directive
►National support schemes remain as key driver for the future RES
deployment in Europe
►Target definition: RES share in gross final energy consumption
►Binding national targets for RES (in total*) by 2020
(*no sectoral targets except the minimum target (10%) for RES in transport)
►Flexibility with respect to national target achievement
(national compliance but with increased cooperation between Member States)
►Measures for an accelerated removal of non-economic RES barriers
(Grid access, accompanying market stimulation measures etc.)

© Fraunhofer ISI
Seite 14
How the European Commission set the targets … „FLAT RATE“ & „GDP-Variation“
… i.e.: RES-target2020 = RES2005% + 50% *RESNEW % + 50%*“RESNEW % GDP-weighting“-“first mover bonus“
Note: Additional potentials do not include biofuel imports from abroad
0%
10%
20%
30%
40%
50%
60%
70%
Austria
Belgium
Bulgaria
Cyprus
CzechRepublic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
UnitedKingdom
EU27
RESintermsof(gross)finalenergy[%ofdemand]
RES share 2005
RES potential 2020 - share on current (2005) demand
RES target for 2020
Achieved RES deployment (2005), realisable RES potential up to 2020 and
agreed RES target for 2020 by Member State
The calculation of the national RES targets
for 2020 and the realisable potentials

© Fraunhofer ISI
Seite 15
States
Contents

© Fraunhofer ISI
Seite 16
Costs and benefits of RES deployment:
Main economic effects
Source: Employ RES study

© Fraunhofer ISI
Seite 17
Costs and benefits of RES deployment:
Gross Employment and GDP impact of RES policy
Source: Employ-RES study

© Fraunhofer ISI
Seite 18
States
 The “Renewable Energy Sources“ Directive 2009 in
detail
Contents

© Fraunhofer ISI
Seite 19
 Full name: Directive 2009/28/EC of the European Parliament and of the
Council
 Establishes a common framework for the promotion of the use of
energy from RES
 Policy goals:
 Energy savings, reduction of GHG emissions, compliance with Kyoto
Protocol
 Promoting the security of energy supply
 Promoting technological development and innovation
 Providing opportunities for employment and regional development
 Ensuring grid access and operability
 Defining sustainability criteria for biofuels/-liquids
The “Renewable Energy Sources“ Directive 2009

© Fraunhofer ISI
Seite 20
Source: CE Delft, 2015
Policy Measures
Article of the Renewable
Energy Directive
Mandatory national overall targets for 2020 3
Mandatory national targets for renewable energy in transport: 10% in 2020 3
National renewable energy action plans 4
Statistical transfers between Member States 6-12
Admin. Procedures, regulations and codes 13
Information and training 14
Guarantees of origin of electricity, heating and cooling produced from
renewable energy sources 15
Access to and operation of the grids 16
Sustainability criteria for biofuels and bioliquids 17-19, 21
Reporting by the Member States 22-23
 Policy Measures:

© Fraunhofer ISI
Seite 21
 Translating the Community 20% target into individual targets for each member
state, reflecting different starting points and potential
 Calculation:
 equal increase in each Member State‘s 2005 share weighted by their GDP
 Taking into account past efforts
 The following may be applied to facilitate target accomplishment:
 Promotion of energy efficiency and savings
 Support schemes
 Cooperation measures
 Mandatory national targets have contributed to driving down technology costs
for RES technologies
 Effective means for RES deployment in MS with low RES ambitions
1. Mandatory national overall targets for 2020:

© Fraunhofer ISI
Seite 22
National overall targets and deployment from
2005 to 2020
Source: REN21, 2011

© Fraunhofer ISI
Seite 23
Renewable energy target trajectory and interim
fulfillment

© Fraunhofer ISI
Seite 24
Renewable energy target trajectory and interim
fulfillment on sector level

© Fraunhofer ISI
Seite 25
 Methodology: target for RES in transport is set on 10% for each
Member State
 Done in order to ensure consistency in transport fuel specifications and
availability
 Concerns about the sustainability and GHG benefits of the transport
target turn out to be a barrier for policy makers and investors.
2. Mandatory national overall targets for
renewable energy in transport:

© Fraunhofer ISI
Seite 26
 Set national trajectories for the share of RES in transport, electricity,
heating and cooling until 2020
 Specify planned mix of different RE technologies
 Cover policy measures to achieve targets such as cooperation between
authorities
 Specify planned statistical transfers with other countries
 Create indicative trajectory tracing path towards achievement of goals
 Measures to ensure biofuels comply with sustainability criteria
 Form the basis for regular reporting of progress to the European
Commission
3. National Renewable Energy Action Plans
(NREAPs)

© Fraunhofer ISI
Seite 27
Achievement status of the NREAP Projections

© Fraunhofer ISI
Seite 28
 Policy instruments can be freely chosen by MS:
 institutional approaches: Aim to facilitate voluntary bargaining to
internalize externalities (voluntary certification, increasing
awareness...)
 command-and-control instruments: Rules forcing or prohibiting
specific behaviour
 market-based instruments: Incentivizing specific behaviour
 Feed-in-tariff
 Feed-in premium
 Quota obligation
 Etc.
3. National Renewable Energy Action Plans
(NREAPs)

© Fraunhofer ISI
Seite 29
G
R
Sweden
Finland
Estonia
Latvia
Lithuania
Poland
CzechRepublik
Slovakia
Bulgaria
Romania
Hungary
Austria
Germany
Denmark
UK
Spain
Portugal
Italy
Malta
France
Netherlands
Luxembourg
Ireland
Greece
Cyprus
Feed-in tariff
Quota obligation
Feed-in premium
Other instruments
Notes:
1)The patterned colours representa combination
of instruments
2)Investment grants, tax exemptions, and fiscal
incentives are not included in this picture
unless they serve as the main support
Instrument
3) Support scheme moratoria are
nottaken into account
´Belgium
Slovenia
Croatia
Chosen policy instruments

© Fraunhofer ISI
Seite 30
 Approach: “MS may agree on […] the statistical transfer of a specified
amount of energy from RES from one MS to another MS”. (source:
Directive 2009/28/EC, Art. 6)
 Goals:
 Take into account different RE potentials
 Ensure cost-effectiveness of target compliance
 Facilitate cross-border support of RE without affecting national
support schemes
3. Flexibility/Cooperation Mechanisms

© Fraunhofer ISI
Seite 31
Statistical transfers
Joint projects
Joint support schemes
Physical transfer from
3rd countries

© Fraunhofer ISI
Seite 32
3.1: Statistical Transfer
 Virtual transfer of energy from one MS statistic to the RES statistic
3.2: Joint projects between Member States
 RES potentials are exploited jointly by two or more MS
 MS define which share counts towards which MS‘s target
3.3: Joint support schemes
 Merging RES support schemes and defining quantity allocation
3.4: Joint projects with third countries
 Joint projects between MS and countries outside the EU
(Source: Klessmann et al., 2014)

© Fraunhofer ISI
Seite 33
 MS ensure, that national rules concerning authorisation, technical
standards etc. applied to renewable energy producing infrastructure are
proportionate and effective in implementing RES
 MS shall encourage local and regional administrative bodies to include
heating from RES in the planning of infrastructure
 MS are supposed to integrate regulation increasing the share of RES in
the building sector
 Use of eco-labels, certificates and national standards to promote a
reduction of energy consumption
4. Administrative procedures, regulations and
codes

© Fraunhofer ISI
Seite 35
Non-economic barriers lead to substantial delays
in project realistion – example of wind projects
Source: Wind-Barriers project // shown is the total
(administrative and grid related) lead time for wind projects

© Fraunhofer ISI
Seite 36
 MS are obliged to make information on support measures, net
benefits/costs of equipment and certification schemes available to all
relevant actors
 MS should develop awareness-raising and training programmes to
inform citizens of benefits of RES
 In planning and building industrial and residential areas, guidance must
be given concerning optimization of the combination of RES
5. Information and Training

© Fraunhofer ISI
Seite 37
 MS are assigned with:
 Implementing measures in order to guarantee the origin of energy to
prove to final customers the share of RE in an energy mix
 Supervising the issuance or transfer of guarantees of origin
 Creating mechanisms ensuring that guarantees of origin are treated
electronically and are accurate, reliable and fraud-resistant
 Exact specification of content of the guarantee of origin is determined
6. Guarantees of origin of electricity, heating
and cooling produced from RES

© Fraunhofer ISI
Seite 38
 Total amount of certificates issued and cancelled
6. Guarantees of origin of electricity, heating
and cooling produced from RES

© Fraunhofer ISI
Seite 39
 Member States are assigned with:
 Taking appropriate steps to develop grid infrastructure, intelligent
networks, storage facilities and the electricity system
 Accelerating authorisation procedures
 Ensuring the transmission and distribution of electricity from RES
 Providing for priority or guaranteed access for electricity from RES to
the grid
 Ensuring that measures are taken to minimise curtailment of RES and
prevent inappropriate curtailment
7. Access to and operation of the grids

© Fraunhofer ISI
Seite 40
 GHG emission saving compared to conventional transport fuels has to be
at least 35% (50% from 2017, 60% from 2018)
 For compliance with the directive‘s requirements, biofuels and – liquids
produced from raw material obtained from the following are prohibited:
 Land with high biodiversity (primary forests, highly diverse grassland…)
 Land with high carbon stock (wetlands, continuously forested areas…)
 Land that was peatland in Jan 2008
 Reporting concerning Member States‘ and third countries‘ national
measures taken to respect ecological and social sustainability criteria
8. Sustainability criteria for biofuels and
bioliquids

© Fraunhofer ISI
Seite 43
Current deployment status:
Target achievement in Heating & Cooling
 3 Member States have not yet achieved their 2013/2014 interim target: NL, LU, UK
 7 Member States failed to achieve the 2013 NREAP target: PT, NL, LU, IE, FR, ES, DK
(Source: Eclareon; Fraunhofer ISI; TU Wien (2015)

© Fraunhofer ISI
Seite 44
Target achievement in Electricity
 13 MS failed to reach their NREAP 2013 targets: AT, DK, EL, FR, HU, IE, LU, MT, NL, PL, PT, SI, SK
 Comparison: In the previous year, 16 MS have already failed

© Fraunhofer ISI
Seite 45
Target achievement in Heating & Cooling
 6 MS have not accomplished their NREAP 2013 targets: DK, FR, IE, NL, PT, SK
 However: 10 MS already reached their 2020 targets: AT, BG, EE, EL, FI, IT, MT, RO, SI, SE

© Fraunhofer ISI
Seite 46
Target achievement in Transport
 22 MS have failed to reach their NREAP 2013 targets: BE, CY, CZ, DE, DK, EE, EL,
ES, FI, FR, HR, IE, IT, LT, LV, MT, NL, PL, PT, RO, SI, UK

© Fraunhofer ISI
Seite 48
CE Delft; Ecologic Institute; Ricardo-AEA; REKK; E-Bridge (2015): Mid-term evaluation of the Renewable Energy Directive.
Available online at
https://ec.europa.eu/energy/sites/ener/files/documents/CE_Delft_3D59_Mid_term_evaluation_of_The_RED_DEF.PDF,
checked on 5/22/2015.
Eclareon; Fraunhofer ISI: Keep-on-Track! Project. Analysis of Deviations and Barriers 2013/2014. Available online at
http://www.keepontrack.eu/contents/publicationsanalysisdeviationsbarriers/kot_deviations-and-barriers-report-2014.pdf,
checked on 5/27/2015.
Eclareon; Fraunhofer ISI; TU Wien (2015): EU Tracking Roadmap 2015.
EU Commission (2007): Renewable Energy Road Map-Renewable energies in the 21st century: building a more sustainable
future. In COM (2006) 848. Available online at http://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52006DC0848&from=EN, checked on 5/20/2015.
European Commission: National Renewable Energy Action Plans. Available online at
https://ec.europa.eu/energy/en/topics/renewable-energy/national-action-plans, checked on 5/22/2015.
European Parliament / Council of the European Union (2009): Directive 2009/28/EC of the European Parliament and of the
Council. In Official Journal of the European Union L 140, pp. 16–62. Available online at http://eur-lex.europa.eu/legal-
content/EN/ALL/?uri=CELEX%3A32009L0028, checked on 5/20/2015.
Klessmann, Corinna; Visser, Erika de; Wigand, Fabian; Gephart, Malte; Resch, Gustav; Busch, Sebastian (2014): Cooperation
between EU Member States under the RES Directive. Available online at http://www.ecofys.com/files/files/ec-ecofys-
tuvienna-2014-cooperation-member-states-res-directive.pdf, checked on 5/22/2015.
Ragwitz, Mario; Schade, Wolfgang; Breitschopf, Barbara; Walz, Rainer; Helfrich, Nicki; Rathmann, M. et al. (2009): The impact
of renewable energy policy on economic growth and employment in the European Union. In Brussels, Belgium: European
Commission, DG Energy and Transport.
Sources

Introduction to the Renewable Energy Directive

More Related Content

Similar to Introduction to the Renewable Energy Directive (20)

More from Leonardo ENERGY (20)

Recently uploaded (20)

Introduction to the Renewable Energy Directive