PURPOSE: to achieve a share of at least 32 % of energy from renewable sources in the Union's gross final consumption of energy by 2030.

LEGISLATIVE ACT: Directive (EU) 2018/2001 of the European Parliament and of the Council on the promotion of the use of energy from renewable sources.

CONTENT: the Directive defines a common framework for the promotion of energy production from renewable sources.

Binding overall Union target by 2030

Member States shall collectively ensure that the share of energy from renewable sources in the Union's gross final consumption of energy in 2030 is at least 32 %.

The Commission shall assess that target with a view to submitting a legislative proposal by 2023 to increase it where there are further substantial costs reductions in the production of renewable energy, where needed to meet the Union's international commitments for decarbonisation, or where a significant decrease in energy consumption in the Union justifies such an increase.

Member States shall set national contributions to meet, collectively, the binding overall Union target as part of their integrated national energy and climate plans.

Support schemes for energy from renewable sources

The Directive aims to strengthen renewable electricity production through market-based support schemes. This support shall be granted in an open, transparent, competitive, non-discriminatory and cost-effective manner. Member States may exempt small-scale installations and demonstration projects from tendering procedures.

In order to ensure financial stability, Member States shall publish a long-term schedule setting out the expected allocation of support, including an indicative timetable, the frequency of tendering procedures where appropriate, the expected capacity, the budget or maximum unitary support expected to be allocated and the eligible technologies envisaged, if any. This schedule shall be updated on an annual basis or, where necessary, to reflect recent market developments or expected allocation of support.

Renewables self-consumers

Member States shall ensure the establishment of a regulatory framework which would empower renewables self-consumers to generate, consume, store, and sell electricity without facing disproportionate burdens.

Integration of renewable energy into heating and cooling

Each Member State shall endeavour to increase the share of renewable energy in that sector by an indicative 1.3 percentage points as an annual average calculated for the periods 2021-2025 and 2026-2030. This increase will be limited to 1.1 percentage points, as an indication, for Member States where waste heat and cold is not used.

Transport sector

The Directive aims to accelerate the use of renewable energy in the transport sector by requiring fuel suppliers to achieve a level of at least 14% of energy produced from renewable sources in transport (minimum share). In this minimum share, the contribution of advanced biofuels as a share of final energy consumption in the transport sector shall be at least 0.2% in 2022 and at least 1% in 2025 and at least 3.5% in 2030.

Biofuels

The Directive defines sustainability and greenhouse gas emission reduction criteria for biofuels, bioliquids and biomass fuels. From 2019 onwards, the contribution of first-generation biofuels to EU targets is expected to decrease gradually to zero by 2030.

Information

Information on support measures shall be made available to all relevant stakeholders, including vulnerable consumers, energy consumers, energy users, installers, architects, suppliers of heating, cooling and electricity equipment and systems and suppliers of vehicles compatible with the use of renewable energy and intelligent transport systems.

Information on the benefits and energy efficiency of equipment for the use of heating or cooling energy and electricity from renewable sources shall be made available either by the supplier of the equipment or system or by the competent authorities.

ENTRY INTO FORCE: 24.12.2018.

TRANSPOSITION: no later than 30.6.2021.

The European Parliament adopted by 495 votes to 68, with 61 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast).

The European Parliament’s position adopted at first reading under the ordinary legislative procedure amended the Commission proposal as follows:

Binding EU targets for 2030 and national targets : Member States shall collectively ensure that the share of energy from renewable sources in the EU's gross final energy consumption by 2030 is at least 32% . For the transport sector, at least 14% of energy consumption in each Member State should come from renewable sources.

The Commission shall assess that obligation, with a view to submitting, by 2023, a legislative proposal to increase it in the event of further substantial costs reductions in the production of renewable energy, where necessary to meet the Union's international commitments for decarbonisation, or where justified on the grounds of a significant decrease in energy consumption in the Union.

Member States may exempt, or distinguish between, different fuel suppliers and different energy carriers when setting the obligation on the fuel suppliers, ensuring that the varying degrees of maturity and the cost of different

The Union's objectives shall be achieved collectively by the Member States through national objectives .

Support schemes for energy from renewable sources : support schemes implemented by Member States shall provide an incentive to integrate electricity from renewable sources into the electricity market in a way that is market-based and responsive to market signals, while avoiding unnecessary market distortions and taking into account the possible costs of system integration and grid stability.

Member States may:

exempt small installations and demonstration projects from tendering procedures; limit tendering procedures to certain technologies where the opening of support schemes to all producers of electricity from renewable sources would lead to insufficient results for reasons such as the long-term potential of a given technology, grid integration costs or grid stability; adapt financial support schemes for projects located in the outermost regions to take into account the production costs linked to their specific situation of isolation and external dependence.

Financial stability : Member States shall publish a long-term indicative schedule covering the main aspects of the expected support, without affecting the ability of Member States to decide on budget allocation in the years covered by the schedule.

This schedule shall be updated annually or as necessary to take into account recent market developments.

Duration of the permit procedure : Member States shall establish or designate one or more contact points which, at the request of the applicant, shall guide and facilitate the entire administrative procedure for the application and granting of permits.

The permit-granting process shall not exceed one year for installations with an electrical capacity of less than 150 kW. Where duly justified on the grounds of extraordinary circumstances, that one-year period may be extended by up to one year.

Member States shall establish a simple-notification procedure for grid connections whereby installations or aggregated production units of renewables self-consumers and demonstration projects, with an electrical capacity of 10.8 kW or less.

Self-suppliers of renewable energy : Member States shall ensure that citizens are entitled to produce renewable energy for their own consumption, to store it and to sell excess production without being exposed to disproportionate or discriminatory costs or charges or unjustified charges.

Member States may apply non-discriminatory and proportionate charges on self-consumers of renewable energy in relation to their self-generated renewable electricity which remains on their premises: (i) from 1 December 2026, if the overall share of self-consumption installations exceeds 8 % of a Member State's total installed electricity capacity or (ii) if the renewable electricity produced by self-consumers is produced in installations with a total installed electrical capacity exceeding 30 kW.

Member States shall also provide a favourable framework to promote the development of renewable energy communities . Household consumers and communities engaging in renewables self-consumption should maintain their rights as consumers, including the rights to have a contract with a supplier of their choice and to switch supplier.

Integration of renewable energy into heating and cooling : each Member State shall endeavour to increase the share of renewable energy for heating and cooling by an indicative 1.3 percentage points as an annual average calculated for the periods 2021-2025 and 2026-2030. This increase shall be limited to 1.1 percentage points, as an indication, for Member States where fatal recovered heat and cold is not used.

Biofuels : within the minimum share of at least 14% of transport fuels to be derived from renewable resources by 2030, the contribution of advanced biofuels as a share of final energy consumption in the transport sector shall be at least 0.2% in 2022 and at least 1% in 2025 and at least 3.5% in 2030.

According to the amended text, the share of biofuels and bioliquids, as well as of biomass fuels consumed in transport, where produced from food and feed crops, shall be no more than one percentage point higher than the share of such fuels in the final consumption of energy in the road and rail transport sectors in 2020 in that Member State, with a maximum of 7 % of final consumption of energy in the road and rail transport sectors in that Member State.

From 2019 onwards, the contribution of first-generation biofuels to EU targets is expected to decrease gradually to zero by 2030 .

The European Parliament adopted by 492 votes to 88, with 107 abstentions, amendments to the proposal for a directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast).

The matter was referred back to the committee responsible for interinstitutional negotiations.

The main amendments adopted in plenary concern the following issues:

Union's binding target and national targets : Parliament proposed setting a binding EU-wide target of at least 35% share of renewable energy (the Commission proposed a target of 27%). For the transport sector, at least 12% of energy consumption in each Member State shall come from renewable sources.

These Union objectives should be collectively achieved by the Member States through national targets taking into account the obligations arising from the Paris Agreement on Climate Change. In cases where a Member State is not on track to meet its foreseen target due to exceptional and duly justified circumstances, it may deviate from the foreseen level of its target by a maximum of 10%.

Support for energy from renewable sources : Members proposed laying down common general principles for renewable energy support schemes. Support schemes for electricity from biomass sources shall be designed to avoid unnecessary distortions of material markets.

To avoid unnecessary distortions of raw material markets, support schemes for renewable energy from biomass shall be designed to avoid encouraging inappropriate use of biomass primarily for energy production if there exists industrial or material uses providing higher added-value, which could include giving priority to the use of wastes and residues.

Member States may provide for exemptions benefiting small-scale installations of less than 500 kW and demonstration projects.

Member States may adapt financial support for projects located in the outermost regions and small islands.

In addition, no support scheme shall be granted for municipal waste which does not comply with the separate collection obligations.

Financial stability : in order to enhance legal certainty, Members stated that the Directive shall apply to both current and future investments .

Renewable support policies shall be predictable and stable and shall avoid frequent or retroactive changes.

Member States shall publish a long-term schedule in relation to the expected allocation of support, covering at least the next five years and including the indicative timing, including frequency of tenders where appropriate, the capacity, the budget or the maximum unitary support expected to be allocated and the eligible technologies.

Member States shall announce nine months in advance any changes to the support and consult with stakeholders.

Where regulatory or network changes have a negative impact on the economy of the projects supported, the projects concerned shall be compensated.

Duration of the licensing procedure : while the Commission’s proposal stipulated that the permit granting process shall not exceed a period of three years, Members stated that for installations with an electricity capacity between 50kW and 1MW, the permit granting process shall not exceed one year

Consumer involvement in energy transition : the new Directive shall not only allow the development of self-consumption and renewable energy communities , but also encourage it while averting discrimination or overly cumbersome procedures or burdens.

The consumption of self-generated renewable energy remaining outside the grid shall not be subject to taxes or charges of any kind.

Member States shall ensure that final customers, particularly household customers, are entitled to participate in a renewable energy community without losing their rights as final customers and without being subject to unjustified conditions or procedures.

Member States shall assess the barriers to and development potential of self-consumption in their territories in order to put in place a framework to promote the development of renewable self-consumption.

Heating and cooling installations : each Member State shall endeavour to increase the share of renewable energy supplied for heating and cooling by at least 2 percentage points (pp) every year (against 1 pp in the Commission proposal), expressed in terms of national share of final energy consumption and calculated according to the methodology set out in the Directive.

Members introduced provisions to ensure that measures taken in this sector give special attention to vulnerable households at risk of energy poverty.

Transport : the proposal establishes an EU obligation for fuel suppliers to provide a minimum share (6.8% in 2030) of low-emission fuels produced from renewable sources (including electricity generated in from renewable sources and advanced biofuels).

In order to reach the target of 12% of the final consumption from renewable sources, Members proposed that this minimum share shall be at least equal to 1.5 % in 2021, increasing up to at least 10 % in 2030 .

The contribution of biofuels, so-called first generation (feed and food crops) shall be at 2017 levels with a maximum of 7 % of gross final consumption in road and rail transport. The contribution from biofuels and bioliquids produced from palm oil shall be 0 % from 2021.

Lastly, Member States shall ensure via their permit or concession granting processes that, by 31 December 2022, 90 % of fuel stations along the roads of the TEN-T Core Network are equipped with public accessible high-power recharging points for electric vehicles.

The Committee on Industry, Research and Energy adopted the report by José BLANCO LÓPEZ (S&D, ES) on the proposal for a directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast).

The committee recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure should amend the Commission proposal as follows.

Union's binding target and national targets : Members proposed setting a binding EU-wide target of at least 35% share of renewable energy (the Commission proposed a target of 27%). For the transport sector , at least 12% of energy consumption in each Member State shall come from renewable sources.

These Union objectives should be collectively achieved by the Member States through national targets taking into account the obligations arising from the Paris Agreement on Climate Change. In cases where a Member State is not on track to meet its foreseen target due to exceptional and duly justified circumstances, it may deviate from the foreseen level of its target by a maximum of 10%.

Support for energy from renewable sources : Members proposed laying down common general principles for renewable energy support schemes. Support schemes for electricity from biomass sources shall be designed to avoid unnecessary distortions of material markets.

Where support for renewable energy is granted through a tender, in order to ensure a high project realisation rate , Member States shall establish and publish non-discriminatory and transparent prequalification criteria and rules on the delivery period of the project and consult stakeholders. Member States shall define and publish a long-term schedule in relation to expected allocation for support, covering at least the following five years.

No support should be given to mixed waste . The only support schemes should concern residual municipal waste, i.e. municipal waste that is collected separately and that can no longer be further recycled or recovered and which is solely designed to be disposed of.

By six months after the date of entry into force of this Directive, the Commission shall review the Guidelines on State aid for environmental protection and energy 2014-2020 in order to incorporate fully the general principles laid down in the Directive.

Financial stability : in order to enhance legal certainty, Members stated that the Directive shall apply to both current and future investments .

Renewable support policies shall be predictable and stable and shall avoid frequent or retroactive changes. Member States shall announce nine months in advance any changes to the support and consult with stakeholders.

Where regulatory or network changes have a negative impact on the economy of the projects supported, the projects concerned shall be compensated.

Duration of the licensing procedure : while the Commission’s proposal stipulated that the permit granting process shall not exceed a period of three years, Members stated that for installations with an electricity capacity between 50kW and 1MW, the permit granting process shall not exceed one year.

Consumer involvement in energy transition : the new Directive shall not only allow the development of self-consumption and renewable energy communities , but also encourage it while averting discrimination or overly cumbersome procedures or burdens.

The consumption of self-generated renewable energy remaining outside the grid shall not be subject to taxes or charges of any kind .

Member States shall ensure that final customers, particularly household customers, are entitled to participate in a renewable energy community without losing their rights as final customers and without being subject to unjustified conditions or procedures.

Heating and cooling installations : each Member State shall endeavour to increase the share of renewable energy supplied for heating and cooling by at least 2 percentage points (pp) every year (against 1 pp in the Commission proposal), expressed in terms of national share of final energy consumption and calculated according to the methodology set out in the Directive.

Members introduced provisions to ensure that measures taken in this sector give special attention to vulnerable households at risk of energy poverty.

Transport : the proposal establishes an EU obligation for fuel suppliers to provide a minimum share (6.8% in 2030) of low-emission fuels produced from renewable sources (including electricity produced in from renewable sources and advanced biofuels). In order to reach the target of 12% of final consumption of energy produced from renewable sources, Members proposed that this minimum share of at least 1.5% in 2021 be increased to at least 10% in 2030 .

For the calculation of a Member State's gross final consumption of energy from renewable energy sources, it was stated that the contribution from biofuels and bioliquids produced from palm oil shall be 0 % from 2021. The Commission shall develop a methodology to certify low indirect land-use change-risk biofuels and bio-liquids by 31 December 2019.

Lastly, Members considered it necessary to establish new Union sustainability criteria for biofuel, bioliquids and biomass fuels have to ensure that the transition to a low carbon economy supports the objectives of the Circular Economy Action Plan and is firmly guided by the Union waste hierarchy.

PURPOSE: to promote the use of energy from renewable sources (recast).

LEGISLATIVE ACT: Directive of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the EU has long been worldwide leader in the development of renewable energy. The 2030 framework for climate and energy sets out the EU target of at least 27% for the share of renewable energy consumed in the EU in 2030. If no new policies are put in place, EU energy system projections indicate that current Member States and EU policies would only lead to approximately, 24.3% of renewable energy consumption in 2030. This level would be well below the minimum 27% EU level binding renewable energy target. It would prevent the Union from collectively delivering on the commitments made in the 2015 Paris Agreement. Accordingly, the Commission indicates that reaching the EU level target of at least 27% calls for a change in policies in the form of a Union level framework leading to EU, national and regional level measures.

The European Parliament called upon the Commission to present the renewable energy legislation and to increase even further the ambition level to at least 30%.

This proposal is linked to the proposals the recast of the Third Energy Package (please refer to 2016/0379(COD) , 2016/0380(COD ), and 2016/0378(COD) ).

IMPACT ASSESSMENT: the Commission considered it opportune to go ahead with a recasting proposal for the Renewable Energy Directive. In particular, it has opted for more proportionate and less burdensome provisions for the heating and cooling sector combined with strengthened provisions in the governance framework to safeguard the achievement of the 2030 targets.

CONTENT : the proposed Directive identified six key areas for action:

creating an enabling framework for further deployment of renewables in the electricity sector; mainstreaming renewables in the heating and cooling sector; decarbonising and diversifying the transport sector; empowering and informing consumers; strengthening the EU sustainability criteria for bioenergy ; making sure the EU level binding target is achieved on time and in a cost effective way.

The main provisions which substantially change Directive 2009/28/EC or add new elements are as follows:

the proposal sets out the Union binding overall target for 2030 : Member States shall collectively ensure that the share of energy from renewable sources in the Union's gross final consumption of energy in 2030 is at least 27%. It establishes the 2020 national targets as baseline; it lays down the general principles that Member States may apply when designing cost-effective support schemes; the provision which regulates how to calculate the share of energy from renewable sources now includes a decreasing maximum share of biofuels and bioliquids produced from food or feed crops starting from 2021 ; the proposal includes a new calculation methodology (anchored on the Energy Performance of Buildings Directive ) of minimum levels of energy from renewable sources in new and existing buildings that are subject to renovation; it establishes a permit granting process for renewable energy projects with one designated authority ("one-stop-shop"); it includes some modifications to the guarantees of origin system; it empowers consumers by enabling them to self-consume without undue restrictions; Member States will endeavour to achieve an annual increase of 1% in the share of renewable energy in the heating and cooling supply; the proposal establishes a EU-level obligation for fuel suppliers to provide a certain share (6.8% in 2030) of low-emission and renewable fuels , in order to stimulate decarbonisation; the draft regulation strengthens the existing EU sustainability criteria for bioenergy , by extending their scope to cover biomass and biogas for heating and cooling and electricity generation.