Explanatory Memorandum to COM(2022)222 - Amendment of Directives on the promotion of the use of energy from renewable sources, on the energy performance of buildings and on energy efficiency - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2022)222 - Amendment of Directives on the promotion of the use of energy from renewable sources, on the energy performance of buildings ... |
|---|---|
| source | COM(2022)222  |
| date | 18-05-2022 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The European Green Deal put energy efficiency and renewable energy at the heart of the clean energy transition. The current international tensions following Russia’s invasion of Ukraine, the overall geopolitical context and the very high energy prices have exacerbated the need to accelerate energy efficiency and the deployment of renewable energy in the Union with the objective to have an energy system that is more independent from third countries. Accelerating the green transition towards renewable energy and increased enegy efficiency will reduce emissions, reduce dependency on imported fossil fuels and provide affordable energy prices to European citizens and businesses across all sectors of the economy.
The Union energy efficiency and renewable energy targets should reflect the pressing need to accelerate energy efficiency and the deployment of renewable energy and should therefore be increased. These revised targets replace the modification to the targets proposed in the proposals to recast Directive 2012/27/EU on energy efficiency 1 and to amend Directive (EU) 2018/2011 on the promotion of the use of energy from renewable sources 2 , adopted on 14 July 2021.
In addition, considering that buildings account for 40% of energy consumed and 36% of energy-related direct and indirect greenhouse gas emissions, it is necessary to increase the deployment of solar installations on buildings. This is one of the fastest ways to deploy renewable energy at a large scale, reduce the use of fossil fuels in buildings and accelerate the decarbonisation and electrification of their energy consumption.
Furthermore, lengthy and complex administrative procedures have been identified as one of the key obstacles for investments in renewables and related infrastructure. The interim report of the RES Simplify study, prepared for the Commission 3 and published together with the present proposal, has revealed that administrative and grid issues make up about 46% of all identified barriers and this is expected to rise in the future. For some wide-spread renewable technologies, such as wind power and photovoltaics, administrative barriers are increasingly becoming more important than other types of barriers. With advancing energy transition, as renewable technologies mature and the projects become less dependent on support schemes, administrative barriers become more prominent.
The most common barriers related to the administrative process for renewable energy projects identified in the RES Simplify study 4 are bureaucratic burden, non-transparent processes, a lack of legal coherence as well as an incomplete and vague framework and guidelines that lead to different interpretations of existing legislation by the competent authorities.
Conflicting public goods are the second main source of obstacles for the deployment of renewable installations. This is particularly the case for wind power, geothermal power and hydropower as well as solar photovoltaics. The most prominent among them concern environmental protection (biodiversity and protection of endangered species and protection of water bodies), other land uses and military/ air defence issues.
Further obstacles identified in the study relate to the lack of support from policy decision-makers or protracted opposition from public or private institutions or the public itself.
Finally, problems related to grid connections and operation procedures have also been identified as severely affecting renewable energy deployment in a number of Member States.
On 18 January 2022, the Commission published a Call for Evidence and an open public consultation to gather stakeholder feedback on the permit-granting procedures and processes for renewable energy projects. 5 This public consultation was carried out in the context of the preparation of the Commission Recommendation on permit-granting procedures and Power Purchase Agreements (PPA), adopted on 18 May, alongside the present proposal. The results of this public consultation confirm that administrative barriers are a key bottleneck for the acceleration of deployment of energy from renewable sources (see section 3 below for more details).
As a result of these barriers, the lead time for renewable energy projects can take up to ten years. A precondition for the acceleration of renewable energy projects to materialise is therefore to simplify and shorten permitting, as set out in the REPower EU Communication 6 . The proposal aims at further simplifying and shortening the administrative permit-granting processes applicable to renewable energy projects in a coordinated and harmonised manner across the EU. This is necessary to accelerate the deployment of renewable energy across the EU in order to ensure the achievement of the EU’s ambitious climate and energy targets for 2030 and the objective of climate-neutrality by 2050.
• Consistency with existing policy provisions in the policy area
This proposal amends the existing Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources. It builds on the existing framework to streamline administrative procedures for renewable energy projects, which introduces, among other elements, a maximum duration of the permit-granting process applicable to renewable energy plants. However, in the context of the current geopolitical situation additional measures are needed to further increase the supply of renewable energy in the Union. In particular, enhanced measures to accelerate permitting procedures for new renewable energy plants, or for adaption of existing installations, are required.
In addition, the Union’s renewable energy target needs to be more ambitious. In Article 1(2)(a) of the proposal to amend Directive (EU) 2018/2001 adopted on 14 July 2021 7 , this target was already raised from 32% to 40%. However, given a radical change in the market conditions for fossil fuels used in power, heating and transport since, including as concerns increased prices and the need for the EU to phase-out its dependence on energy imports from Russia, it is necessary to raise the 2030 target for renewables to 45% so that they better contribute to this objective as well as to having competitive energy prices.
This proposal also amends Directive 2010/31/EU on the energy performance of buildings. It builds on the existing framework on energy performance of buildings and renewable energy. It introduces obligations on Member States to promote the deployment of solar installations on buildings.
Article 4(1) of the proposal for a recast of the Directive on energy efficiency adopted on 14 July 2021 already raised the Union energy efficiency target for 2030 to 9% compared to the projections of the 2020 Reference Scenario. However, given the high energy prices and a radical change in market conditions leading to an increased cost-effectiveness of energy efficiency measures and the need for the Union to overcome its dependence on fossil fuels and energy imports from Russia, it is necessary to further raise the 2030 target for energy efficiency to 13% to ensure that this objective and the decarbonisation targets are achieved fast and in a cost-effective way. The proposal therefore also amends Directive 2012/27/EU on energy efficiency in order to strengthen energy efficiency and increase the Union’s 2030 target for energy efficiency.
The Commission will inform the co-legislators that:
- Article 1(2)(a) of the proposal to amend Directive (EU) 2018/2001 adopted in July should be considered superseded by Article 1(2) of the present proposal.
- Article 2 of this proposal should be considered as added to the proposal for a recast of Directive 2010/31/EU presented on 15 December 2021 8 . Therefore, if adopted, this should be reflected in the recast of that Directive.
- Article 3 of this proposal should be considered as replacing Article 4(1) of the proposal for a recast of Directive 2012/27/EU presented on 14 July 2021. Therefore, if adopted, this should be reflected in the recast of that Directive.
• Consistency with other Union policies
The proposal is consistent with a broader set of initiatives to enhance the Union’s energy resilience and prepare against possible emergency situations, notably the Commission’s ‘Fit for 55’ proposals, in particular the revision of Directive (EU) 2018/2001 and the recasts of Directives 2010/31/EU and 2012/27/EU.
Following the recent geopolitical developments, in March 2022 the Commission issued the REPowerEU Communication. In accordance with the REPowerEU Communication, the Commission has published a recommendation on speeding up permit-granting procedures for renewable energy projects, accompanied by guidance to help the Member States speed up permitting for renewable energy plants. This will give Member States the tools to already start reducing the time taken to approve applications for renewable energy plants, and so to quickly respond to the unprecedented energy crisis caused by the current geopolitical situation. In addition, the Commission presents this proposal to ensure that projects are approved in a simpler and faster way across the Union. Following the recommendation with a legal proposal will give greater certainty to project promotors and investors, while Member States should already be moving in the direction of speeding up permit-granting procedures in accordance with the Recommendation. Moreover, a speedy and efficient implementation of the Recommendation can play a key role to ensure that Member States meet their new obligations under the current proposal.
The proposal aims at further streamlining the different steps of the permit-granting processes applicable to renewable energy, including the assessment of potential environmental impacts. Renewable energy and environmental policies pursue closely interlinked objectives as they both serve the same overall objective of achieving climate mitigation. The proposal strenghthens the role that environmental assessments of plans or programmes carried out by Member States in accordance with Directive 2001/42/EC of the European Parliament and of the Council 9 can play for a faster deployment of renewable energies, in particular for the designation of renewable go-to areas. The proposal also provides a specific framework for permit-granting procedures for individual renewable energy projects located in renewables go-to areas and outside those areas. Such framework combines in an efficient manner the need to authorise in a fast and simple manner the majority of projects which are unlikely to give rise to environmental risks, with a high level of protection by ensuring a closer scrutiny of the most problematic projects.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The proposal is based on two legal bases:
- Article 194(2) of the Treaty on the Functioning of the European Union 10 (TFEU), which provides the legal basis for proposing measures to develop new and renewable forms of energy and promote energy efficiency, which are goals of the Union’s energy policy set out in Article 194(1)(c) TFEU.
- Article 192(1) of the TFEU, which provides the legal basis to amend the application of the Union environmental acquis.
• Subsidiarity (for non-exclusive competence)
A cost-efficient, fast and large-scale deployment of sustainable renewable energy in line with the ambition of the European Green Deal and the REPower EU Communication cannot be achieved by Member States alone. An EU approach is needed to provide the right incentives to Member States with different levels of ambition to accelerate, in a coordinated way, the energy transition from the traditional fossil fuel-based energy system towards a more integrated and energy-efficient energy system based on renewable energies.
Taking into account the different energy policies among Member States, action at EU level, supported by the robust governance framework, is more likely to achieve the EU climate target and required increased deployment of renewables than national or local action alone.
Lengthy and complex administrative procedures are a key barrier for investments in renewable energies and their related infrastructure. The duration and complexity of the permit-granting procedures greatly varies between the different renewable energy technologies and between Member States. While Member States can take action to address those barriers which exist at national level, a coordinated European approach to shortening and simplifying permit-granting procedures and administrative processes is needed in order to speed up the necessary deployment of renewable energies. This is in turn necessary for the EU to reach its climate and energy 2030 targets and its long-term objective of climate neutrality as well as phase out its dependence on Russian fossil fuels and reduce energy prices. Taking into account the different energy policies, priorities and procedures among Member States, and in view of the urgency to accelerate the deployment of renewable energy across all Member States, action at EU level is more likely to achieve the required objectives than national or local action alone.
Union level action is needed to ensure that Member States contribute to the EU level binding energy efficiency target and that it is collectively and cost-effectively met. Union action will supplement and reinforce national and local action towards increasing efforts in energy efficiency.
EU added value
EU action on renewable energy and energy efficiency brings added value because it is more efficient and effective than individual Member States’ actions, avoiding a fragmented approach by addressing the transition of the European energy system in a coordinated way.
A European approach allows all Member States to fully harness their potentials for the cost-efficient deployment of renewable energy needed to achieve the Union climate and energy targets, making sure that renewable energy generation capacity is smoothly deployed in all Member States.
The Union’s energy and climate targets for 2030 are collective targets. In this regard, coordinated Union policies have a better chance of transforming the Union to a climate neutral continent by 2050.
• Proportionality
The initiative complies with the proportionality principle. In view of the unprecedented geopolitical situation created by Russia’s invasion of Ukraine and the high energy prices, there is a clear need for coordinated and urgent action to accelerate the deployment of renewable energy sources. The balance between obligations and flexibility left to the Member States on how to achieve the objectives is considered appropriate given the imperative of meeting the 2030 climate and energy targets and the objective of climate neutrality laid down in the European Climate Law as well as the urgency to reduce both Union’s energy dependency and energy prices.
• Choice of the instrument
This proposal is a Directive amending Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources, increasing the Union’s renewable energy target for 2030 and strengthening the permitting-related provisions of that Directive (Articles 15-17). It also amends Directive 2010/31/EU, promoting solar installations on buildings, and Directive 2012/27/EU, increasing the Union’s energy efficiency target for 2030. This revision of Directive (EU) 2018/2001, Directive 2012/27/EU and Directive 2010/31/EU is limited to what is considered necessary to have renewable energy and energy efficiency targets that are consistent with the current pressing context and to increase solar installations on buildings and streamline permit-granting procedures in order to accelerate the deployment of renewable energy.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Stakeholder consultations
On 18 January 2022 the Commission published a Call for Evidence and a three-month open public consultation to gather stakeholder’s feedback on the permit-granting procedures for renewable energy projects. This public consultation was carried out in the context of the preparation of the Commission Recommendation on permit-granting procedures and Power Purchase Agreements (PPA), adopted on 18 May, alongside the present proposal. In this context, the Commission also organised a high-level stakeholder event and two workshops aimed at discussing the existing barriers and good practices in the permit-granting processes of the different Member States.
Due to the urgency of the proposal, which is put forward in reaction to the crisis triggered by the Russian invasion of Ukraine and the resulting need to urgently accelerate the deployment of renewable energy, the Commission builds on the results of these consultations and on the input provided by key stakeholders in different workshops, meetings and fora, in particular a high-level conference on permit-granting for renewable energy projects and PPAs and two workshops on permit-granting procedures for repowering projects in the wind energy and hydropower sectors.
The open public consultation asked for the views on permit-granting procedures of two groups of stakeholders: public authorities, and project promoters and associations.
In their replies, 7 out of 8 (87.5%) public authorities indicate the lack of availability of sites on land or at sea as the main challenge to the expansion of renewable energy in their jurisdiction, followed by lack of grid capacity (62.5%), lack of public acceptance / conflict between public goods (50%) and duration of procedures (50%). When asked about the main bottlenecks for processing renewable energy project permits, complexity of coordination at different levels of government or administration is presented as the main barrier by public authorities (75%), followed by lack of human resources (50%) and lack of public acceptance or conflict between public goods (50%).
Approximately half of the project promoters and associations (70 / 155) ranked the length of administrative procedures as the most important barrier that prevents renewable energy projects from materialising while 62 pointed to grid connection issues. Respondents also ranked competition with environmental regulations (44) and the complexity of the applicable requirements or procedures (35) among the most important barriers. In the replies to the open text questions, respondents stressed the importance of spatial planning, expressed support for multiple uses of space, such as agri-PV, and called for the involvement of the local population. The public consultation also delivered a clear call for a harmonised set of criteria for the designation of suitable areas for projects.
The views of the stakeholders as expressed in the open public consultation and during the workshops were taken into account when elaborating the present proposal.
• Collection and use of expertise
This proposal builds on the results of the RES Simplify study, which provides a comprehensive overview of the existing barriers related to permitting, national performance indicators as well as best practices related to permit-granting procedures for renewables, with a focus on administrative barriers in the power sector. The interim report of the study is published together with the adoption of the present initiative and the Recommendation on permit-granting procedures and PPAs. This proposal also reflects the views shared by the relevant stakeholders during the consultation process.
• Impact assessment
Due to the politically sensitive and urgent nature of the proposal, no specific impact assessment was carried out.
However, the above-mentioned study, the open public consultation and the extensive workshops organised with stakeholders, as well as the Commission’s own analysis, provide solid insights into the problems related to planning and permit-granting procedures as well as options to address them.
• Fundamental rights
In terms of consistency with the Charter for fundamental rights, the overarching aim of this review is to increase energy efficiency and the use of renewable energy and reduce GHG emissions, and this is entirely in line with Article 37 of the Charter under which a high level of environmental protection and the improvement of the quality of the environment must be integrated into the policies of the Union and ensured in accordance with the principle of sustainable development.
4. BUDGETARY IMPLICATIONS
This proposal amends an existing Directive on the promotion of renewable energy, and the administrative impact and costs are therefore estimated to be moderate, as most of the necessary structures and rules are in place. Member States will face some costs in implementing the new obligation to identify ‘renewables go-to areas’ but the overall streamlining of procedures is expected to bring significant cost savings for Member States. The additional costs of a higher renewable energy target in the EU will be balanced by other economic, environmental and social benefits such as increased security of supply, by replacing imported fossil fuels from third countries, and greater resilience against externalities, while contributing to the carbon sink and reducing air pollution. The proposal does not entail any additional costs for the EU budget.
Regarding the amendment to the Directive on energy efficiency and the Directive on the energy performance of buildings, this proposal does not have any implication for the EU budget. Regarding costs for Member States, this proposal amends existing Directives and largely relies on structures and rules that are already in place, especially when taking into account the new provisions put forward through the proposals to recast both Directives. Member States will face some costs in implementing additional measures to contribute to the target achievement and the new obligation on buildings, but they are expected to bring significant cost savings for households and enterprises.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
After the adoption of this amending Directive by the co-legislators, during the transposition period, the Commission will undertake the following actions to facilitate its transposition:
–Organisation of meetings with Member States’ experts in charge of transposing the different parts of the Directive to discuss how to transpose them and solve doubts, either in the context of the Concerted Action for Renewable Energy Sources (CA-RES),the Concerted Action for Energy Performance of Buildings (CA-EPBD) and the Concerted Action for Energy Efficiency (CA-EED) or in a committee format.
–Availability for bilateral meetings and calls with Member States in case of specific question on the transposition of the Directive.
After the transposition deadlines, the Commission will carry out a comprehensive assessment of whether Member States have completely and correctly transposed the Directive.
Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate Action established an integrated energy and climate planning, monitoring and reporting framework, to monitor progress towards the climate and energy targets in line with the transparency requirements of the Paris Agreement. Member States had to submit to the Commission their integrated national energy and climate plans by the end of 2019, covering the five dimensions of the Energy Union for the period 2021-2030. From 2023, Member States must report biennially on the progress made in implementing the plans and in addition, by 30 June 2023 they must notify the Commission of their draft updates of the plans, with the final updates due on 30 June 2024. This proposal will not create a new planning and reporting system, but would be subject to the existing planning and reporting framework under Regulation (EU) 2018/1999. A future revision of the Governance Regulation would allow a consolidation of these reporting requirements.
• Explanatory documents (for directives)
Following the ruling of the European Court of Justice in Commission vs Belgium (case C-543/17), Member States must accompany their notifications of national transposition measures with sufficiently clear and precise information, indicating which provisions of national law transpose which provisions of a directive. This must be provided for each obligation, not only at “article level”. If Member States comply with this obligation, they would not need, in principle, to send further explanatory documents on the transposition to the Commission.
• Detailed explanation of the specific provisions of the proposal
The main provisions which substantially change Directive (EU) 2018/2001, Directive 2012/27/EU and Directive 2010/31/EU or add new elements are the following:
Article 1(1) adds a new definition to Article 2 of Directive (EU) 2018/2001, to define ‘renewables go-to area’.
Article 1(2) modifies Article 3(1) of Directive (EU) 2018/2001 by increasing the Union’s renewable energy target to 45%. This Article supersedes the amendment of Article 3(1) of Directive (EU) 2018/2001 included in the proposal to modify Directive (EU) 2018/2001 adopted on 14 July 2021 11 .
Article 1(3) inserts a new paragraph 2a in Article 15 requiring the Member States to promote the testing of new renewable energy technologies while applying appropriate safeguards.
Article 1 i inserts a new Article 15b on the obligation for Member States to identify the land and sea areas necessary for the installation of plants for the production of energy from renewable sources in order to meet their national contributions towards the 2030 renewable energy target.
Article 1(5) inserts a new Article 15c on the obligation for Member States to adopt a plan or plans designating ‘renewables go-to areas’, which are particularly suitable areas for the installation of production of energy from renewable sources.
Article 1(6) replaces Articles 16 of Directive (EU) 2018/2001, extending the scope of the permit-granting process, clarifying the start of the permit-granting process and asking for the most expeditious administrative and judicial procedures available for appeals in the context of an application for a renewable energy projects.
Article 1(7) inserts a new Article16a, which regulates the permit-granting process in renewables go-to areas.
Article 1(8) inserts a new Article 16b, which regulates the permit-granting process outside renewables go-to areas.
Article 1(9) inserts a new Article 16c, which regulates the permit-granting process for the installation of solar energy equipment in artificial structures.
Article 1(10) inserts a new Article 16d to ensure that plants for the production of energy from renewable sources, their connection to the grid, the related grid itself or storage assets are presumed to be of overriding public interest for specific purposes.
Article 2 inserts a new Article 9a to Directive 2010/31/EU on the obligation for Member States to ensure new buildings are solar ready and to install solar energy installations on buildings. This new Article 9a should be reflected in the recast of Directive 2010/31/EU, for which the Commission presented a proposal on 15 December 2021 12 .
Article 3 modifies Article 3 of Directive 2012/27/EU to increase the Union target for energy efficiency. This amendment should replace that made by Article 4(1) of the recast of Directive 2012/27/EU, for which the Commission presented a proposal on 4 July 2021 13 .
Article 4 concerns transposition.
Article 5 concerns entry into force.
Article 6 concerns addressees.