EREF Board Meeting Brussels, 20 October 2015

EREF
European Renewable Energies Federation
EREF Board Meeting
Brussels, 20 October 2015
Dr. Dörte Fouquet
- EREF Representing Director -
EREF
European Renewable Energies Federation
4. Membership fee issues 2015
EREF
European Renewable Energies Federation
EREF Membership developments since May 2015

EDORA: request for 2015 membership fee suspension due
to financial difficulties

ARGE Netz: cancellation of membership after 2015

Outstanding 2015 membership fee payments as of today:
€ 12,565

Calculation of membership fees for 2016 pending
3
EREF
European Renewable Energies Federation
5. Update on EREF actions
– past and future -
EREF
European Renewable Energies Federation
EREF action between May and October 2015

Regular action




EREF policy briefings
EREF SHP newsletter (quarterly)
Updates on ongoing issues
Participation in
• post-EREC policy meetings
• RES Steering Committee meetings
• Hydro policy network meetings
• IDEAS meetings
• Community Power meetings
• Relevant WFD CIS Working group meetings
 Website updates
5
EREF
European Renewable Energies Federation
EREF action between May and October 2015

Specific action
 EREF Small Hydropower Workshop (Jun 2015)
 EC consultation meeting on Natura 2000 Guidelines for
Small Hydropower Development (Jul 2015)
 Joint position paper with Brussels-based renewable
associations on energy market design (Jul 2015, not yet
published)
 Detailed report and positions on capacity markets and
capacity mechanisms (Aug 2015)
 Joint letter with Brussels-based renewable associations on
2030 governance to EC (Sep 2015)
 Joint letter with Brussels-based renewable associations on
investment security to EC (Sep 2015)
6
EREF
European Renewable Energies Federation
EREF action between May and October 2015

Specific action continued
 Position paper on energy market design (Sep 2015)
 Joint position paper with Brussels-based renewable
associations on 2030 governance (Sep 2015)
 Reply to EC’s public consultation on market design (Oct
2015)

Keep on Track
 Organisation of policy workshop (Brussels)
 Development of 7th Policy Briefing
 Final technical and financial project report
7
EREF
European Renewable Energies Federation
EREF action between May and October 2015

Project with EU RECP
 Dissemination activities on renewable energy related RECP
activities to EREF members and database
 Participation in questionnaire
 € 12,000 income for EREF

Communication activities





1 press release (EREF position on energy market design)
Article on small hydropower developments (REECO)
Installation of Twitter account
Update of email distribution lists
Presentations and participations in panels at conferences
8
EREF
European Renewable Energies Federation
Planned EREF action from October 2015 onwards

Specific action
 Series of meetings with EC officials (DG Ener, Comp, Clim,
Sec Gen, Env) re market design, governance, RED, SHP
 Finalization of EREF position papers on governance (Nov
2015)
 EREF position paper on new Renewable Energy Directive
including annex with detailed text proposals (Dec 2015)
 Joint position paper with Brussels-based renewable
associations on new Renewable Energy Directive (Dec 2015)
 EP Briefing event on governance (sponsored by BEE, Dec
2015)
 EREF letter to President Juncker to complain about funding
of coal and gas through EFSI (if still applicable)
9
EREF
European Renewable Energies Federation
Planned EREF action from October 2015 onwards

Specific action continued
 EREF SHP Chapter: position paper and background info on
small hydropower issues
 Reply to EC’s public consultation on the new Renewable
Energy Directive (Jan 2016)
 EREF’s New Year Reception (26 Jan 2016)
 Development of follow up project proposal to Keep on Track
(Jan 2016)

Communications
 Internet forum for Members (2015)
 Presentations at conferences
 Policy chat
10
EREF
European Renewable Energies Federation
EREF Board Meeting
Brussels, 20 October 2015
Dr. Dörte Fouquet
- EREF Representing Director -
EREF
European Renewable Energies Federation
6. Presentation of ideas for future EREF
membership fee structure and income
possibilities
EREF
European Renewable Energies Federation
EREF Small Hydropower Chapter

Regarded as special task within EREF

Existing EREF Members contributed on voluntary basis in
addition to their EREF membership fees

RENEXPO Salzburg, Nov 2015: opportunity to gain
additional Members and supporters

Will former ESHA Members join?
13
EREF
European Renewable Energies Federation
8. Political report from Brussels
EREF
European Renewable Energies Federation
The “Energy Union Package” (February 2015)

Goal: “a resilient Energy Union with an ambitious
climate policy at its core is to give EU consumers households and businesses - secure, sustainable,
competitive and affordable energy. Achieving this
goal will require a fundamental transformation of
Europe's energy system.”

Ambition: “to make the EU the world number one in
renewable energies”
EREF
European Renewable Energies Federation
Main EU agenda topics

Energy market design (including self-consumption
and capacity markets and mechanisms)

Heating and Cooling Strategy

Governance

Revised Renewable Energy Directive

Other EU updates

Investor protection

European Funding Opportunities
EREF
European Renewable Energies Federation
Vision for a new European energy market

Increased competition (more players)

A market fit for renewables

Increased cross-border flows of electricity

Consumer as prosumer

Producer

Self-consumption

Choice from where to get electricity
EREF
European Renewable Energies Federation
A new Energy Market Design: Currently preferred
positions of the European Commission

High importance of harmonised network codes

Enhanced development of inter-connectors within
the EU

Energy-only market with a secured supply;

Creation of balancing-markets

Inter-linkage of intra-day markets from 2017
onwards

Electricity price peaks as investment incentives (no
limits to electricity price peak)
EREF
European Renewable Energies Federation
A new Energy Market Design: Currently preferred
positions of the European Commission


“Integration” of renewables in the market through

Subsidies and support for renewables in line
with the market

Balancing responsibility for renewables

As soon as new market design functions,
priority dispatch for renewables will be
abandoned
Equal treatment of demand-side management and
electricity production
EREF
European Renewable Energies Federation
A new Energy Market Design: Currently preferred
positions of the European Commission

Role of consumers:

Dynamic billing for consumers

No regulated electricity prices

Highly flexible demand-side management for
companies and especially for private households

Aggregators for private households
EREF
European Renewable Energies Federation
A new Energy Market Design: Currently preferred
positions of the European Commission

No subsidies/support for power stations which loose
money; instead market-based approach

National capacity markets will not be allowed to
disrupt European market design

Assessment of national capacity markets needs to
be done with a harmonized/same methodology

Regular revision/check of market system during
transition periodEnhanced European
interconnectivity (transnational grid capacity)
EREF
European Renewable Energies Federation
Potential implications of new Energy Market Design
on EU Member States

Possibility to participate in balancing markets and
intra-day markets

New business models and strategies given electricity
price peaks (storage, self-consumption)

Potential changes to existing capacity market?

End of subsidies to uneconomical power stations
(Coal? Nuclear?)
EREF
European Renewable Energies Federation
Heating and Cooling Strategy

Commission regards heating and cooling as low hanging
fruit (currently only 15% of H&C generated by renewable
energy

Several public consultation meetings

Major elements include energy efficiency and use of local
energy sources

Strategy to be presented by beginning of 2016
EREF
European Renewable Energies Federation
Some background from within the Commission
DG Ener looks carefully at the German debate and
hopes that the German path towards an EOM without
capacity market systems but capacity reserve may help
to go after excessive capacity market plans of other MS
24
EREF
European Renewable Energies Federation
A new Energy Market Design: timeline
New Energy Market Design
15 Jul - 8 Oct 2015
End of public consultation on market design
Nov 2015 – Feb
2016
Evaluation and consolidation of content of new energy market
design
18 Nov 2015
Vice-President Šefčovič: State of the Energy Union
Nov/Dec 2015
EP Ini Report on Energy Union?
Jan 2016
Publication of Heating and Cooling Strategy
Spring 2016
Impact assessment of energy market design
Q4 2016
2016 Winter Package including Market Design Directive,
Renewable Energy Directive, Energy Efficiency Directive,
sustainability criteria, labelling (tbc)
18 Nov 2016
Vice-President Šefčovič: State of the Energy Union
End of 2016/ early
2017
Legislative reports
EREF
European Renewable Energies Federation
A new Energy Governance structure:
key elements

Precise and robust governance system which

Guarantees investment security

Promotes cooperation and coordination among Member
States

Ensures achievement of 2030 RE target

Defining national renewable energy contributions

Ensuring the implementation of national contributions

Regional cooperation and coordination
EREF
European Renewable Energies Federation
A new Energy Governance structure –
discussed options
2030 goal: a binding EU-wide target of at least 27%
renewable energy within gross final energy consumption

Binding or non-binding national renewable energy
contributions? Binding regional targets?

Enforcement of the implementation of national
contributions?
Potential implications on EU Member States:
non-binding national RE targets will allow nonambitious RE policy
Possibility to leave it to other EU Member States to
develop RE
EREF
European Renewable Energies Federation
A new Energy Governance structure –
discussed options

Regional cooperation (coordinated regional policy
planning, joint projects between Member States,
joint research activities and co-funding for
innovative technologies)?
Potential implications on EU Member States:
Joint RE development with direct neighbours,
“electricity” neighbours or within regions
EREF
European Renewable Energies Federation
A new Energy Governance structure –
discussed options

Incentivizing national investments in renewable
energy? Countries with ambitious RE targets get
additional EU funding.
Potential implications on EU Member States:
“Under-performing” Member States pay for projects
in “over-performing” Member States
Additional funding opportunities for RE projects in
“over-performing Member States
EREF
European Renewable Energies Federation
A new Energy Governance structure: timeline
2030 Governance Scheme
6 Oct 2015
Meeting of task force on national energy and climate plans
(national focal points) re country fiche and governance scheme
20 Oct 2015
End of Energy Union Tour of Vice-President Šefčovič:
18 Nov 2015
Vice-President Šefčovič: State of the Energy Union
26 Nov 2015
Energy Council Conclusions
Nov/Dec 2015
EP Ini Report on Energy Union?
Dec 2015
New reference scenario
Q4 2016
2016 Winter Package including Market Design Directive,
Renewable Energy Directive, Energy Efficiency Directive,
sustainability criteria, labelling (tbc)
18 Nov 2016
Vice-President Šefčovič: State of the Energy Union
EREF
European Renewable Energies Federation

Revision of the Renewable Energy
Directive
Commission plan: renewable energy package in
winter package 2016

Including a new Renewable Energy Directive

New Directive will have special chapter on
community and citizens involvement

Pending discussion on two options:


Recast of current Directive

Complete new development of Directive
Public consultation process in November 2015 (key
topics will be state aid and priority dispatch)
EREF
European Renewable Energies Federation
A new Renewable Energy Directive: timeline
Revision of the Renewable Energy Directive
Nov 2015 – Jan
2016
Public consultation process on new Renewable Energy Directive
18 Nov 2015
Vice-President Šefčovič: State of the Energy Union
Nov/Dec 2015
EP Ini Report on Energy Union?
Dec 2015
New reference scenario
Spring 2016
Impact assessment of energy market design
Q4 2016
2016 Winter Package including Market Design Directive,
Renewable Energy Directive, Energy Efficiency Directive,
sustainability criteria, labelling (tbc)
18 Nov 2016
Vice-President Šefčovič: State of the Energy Union
End of 2016/
early 2017
Legislative reports
EREF
European Renewable Energies Federation
Other EU Updates
What?
Status
Communication on Energy
Security
EP initiative report rejected in final vote in June
2015. No official EP view.
EU Energy Union
EP initiative report pending. Stalled finalization of
report due to internal rules of procedures and
political considerations among Parties.
Climate agreement in Paris
EP initiative report – 15 MEPs as part of EU
delegation
Medium Combustion Plants
Directive
Reached agreement (June 2015): plants with output
> 5MW have time until 2025 to comply; plants
between 1-5 MW have time until 2030.
EU Sustainable Energy
Declarations with third
countries
Prelude to 2nd and 3rd aspect of “making the EU no.1
in renewables”: EU industry policy and policy to
boost export of European renewable equipment and
know-how (planned for 2016)
EREF
European Renewable Energies Federation
SHP related EU developments
What?
Status
ECJ decision on
interpretation of the WFD
Confirms principle to prevent the water body from
“deterioration of the status” or to enhance its quality
by implementing a duty to obtain an appropriate
permit
Guidelines for SHP
development in Natura
2000 areas
New draft version by late autumn 2015
High-level conference in Nov 2015
Final proposal by beginning of 2016
Water Framework Directive
Revision planned for 2019; not earlier as originally
announced by European Commission
CIS work programme 201618
Final programme to be adopted in Nov 2015
Less working groups
EREF
European Renewable Energies Federation
Investor protection under the Energy Charter Treaty
in view of retroactive changes in legislation for RES
support in some MS of the EU
Art. 10 Energy Charter Treaty:
“Each Contracting Party shall, in accordance with the provisions of
this Treaty, encourage and create stable, equitable, favourable and
transparent conditions for Investors of other Contracting Parties to
make Investments in its Area. Such conditions shall include a
commitment to accord at all times to Investments of Investors of
other Contracting Parties fair and equitable treatment. Such
Investments shall also enjoy the most constant protection and
security and no Contracting Party shall in any way impair by
unreasonable or discriminatory measures their management,
maintenance, use, enjoyment or disposal. In no case shall such
Investments be accorded treatment less favourable than that
required by international law, including treaty obligations. Each
Contracting Party shall observe any obligations it has entered into
with an Investor or an Investment of an Investor of any other
Contracting Party.”
EREF
European Renewable Energies Federation
Investor protection: The principle

Energy Charter Treaty in principle allows investors
to proceed against “host” States
 Dispute resolution through arbitration
•

Several cases, e.g. against Spain, against Czech
Republic…
Question: how does that sit in proceedings
between investors from Member States against
Member States?
 Shouldn’t it normally be the European
Commission?
EREF
European Renewable Energies Federation
Position of the European Commission: General

European Commission considers Energy Charter Treaty nonapplicable in proceedings against Member States


„Amicus Curiae“ in several proceedings


Respectively: Damages to undertakings = illegal State aid (Czech
Republic, Romania…)
AES vs. Ungarn, ICSID-Case No. ARB/07/22; Electrabel vs. Ungarn,
ICSID-Case No. ARB/07/19, Micula vs. Rumänien; Antin vs. Spain, ICSID
Case No. ARB/13/31; Eiser vs. Spain, ICSID Case No. ARB/13/36
BUT: Arbitration tribunals consider Energy Charter Treaty
applicable

ONLY: primacy of EU law
•
What has been enacted in order to implement EU law cannot
violate Energy Charter Treaty!
EREF
European Renewable Energies Federation
Position of the European Commission
Latest
“Practical example”-Case Micula /Steel business

Romania maintained- prior to accession to EU – certain
custom exemptions
 Micula brothers benefited from that

In accession negotiations custom exemptions abolished
 Micula brothers sued under bilateral investment treaty

Arbitration tribunal ordered Romania to pay 82 million Euro
damages
 Commission argued – though involuntarily – this would be State
aid and prohibited the payment

Case now before the General Court (T-646/14)!
EREF
European Renewable Energies Federation
The „Vattenfall“ case: History

First proceedings initiated in 2009
 Vattenfall AB, Vattenfall Europe AG, Vattenfall Europe
Generation AG v. Federal Republic of Germany (ICSID Case
No. ARB/09/6) under the Energy Charter Treaty at the World
Bank’s ICSID

Reason: environmental restrictions imposed on a €2.6
billion coal-fired power plant being under construction
along the banks of the Elbe River
 Claim: EUR 1.4 billion

March 3, 2011: Parties settle by agreement embodied in an
award by consent
 Germany paid, standards were lowered

The EU Commission did not intervene as “amicus curiae”!
EREF
European Renewable Energies Federation
The “Vattenfall” case: Latest

Vattenfall initiated arbitration proceedings under the
Energy Charter Treaty against Germany
 Reason: Germany decided to speed up the nuclear
phase-out
 Request: 4 675 903 975,32 Euro damages!

European Commission in September 2015 joined as
«amicus curiae»
 Was asked by the Tribunal to submit its observations
 Likely Commission again to defend its position that
against Member States Energy Charter Treaty nonapplicable
EREF
European Renewable Energies Federation
European Funding Opportunities
SET Plan

European Commission launched new Strategic Energy
Technology (SET) Plan (15 Sep)

SET Plan Conference in Luxembourg (21/22 Sep)

No official EC communication, but document from Sec
Gen

Ping-pong game between stakeholders for final
communication

Global Industry Technology Leadership (GITL) Fund
planned for 2016 including enlarged funds for energy

GITL Fund part strategy to “make the EU no. 1 in
renewables
EREF
European Renewable Energies Federation
European Funding Opportunities
NER 400

NER 400 part of EU’s Framework for Climate and Energy
2020-2030

Extended scope to cover “low carbon innovation in
industrial sectors”.

2.1 bn EUR for innovative renewable energy projects and
one CCS project

So far, mainly project applications for CCS

Big funding opportunity for renewables
EREF
European Renewable Energies Federation
European Funding Opportunities
Horizon 2020 & others

Horizon 2020 draft work progammes for 2016-17
available; subject to final changes

Final work programme expected for mid-/end of
October 2015

BBH is in process of finalising detailed overview of
available funding schemes for renewables at EU and
national levels (EU member States)

African-EU Renewable Energy Cooperation
programme (RECP): new RECP Portal including main
RECP products and services for private sector
stakeholders such as the Finance Instrument Database
and country market briefings
EREF
European Renewable Energies Federation
Update on the RES Steering Committee
EREF
European Renewable Energies Federation
RES Steering Committee

Formal request for meeting between national associations
and Brussels-based renewable energy associations

Suggestion to meeting before EREF New Year’s Reception
to discuss joint actions on governance and RES Directive

Invitation to Commissioner Cañete to speak to RE
community during EREF New Year’s Reception

TF RED/Governance
- Changed lead from SPE to EWEA
- Joint position paper on governance (Sep 2015)
- Joint position paper on RED (Dec 2015)
45
EREF
European Renewable Energies Federation
RES Steering Committee


TF Market Design

Joint position paper on Market Design (Nov 2015)

Media training (mid- November? EWEA? EREF?)
TF Heating and Cooling

Several background paper sent to Commission

Continued meetings and input
46
EREF
European Renewable Energies Federation
EREC Update

No news on pending liquidation process of EREC and
claim of REH landlord

Payback of EREF’s indemnity payment to EREC staff
pending
47
EREF
European Renewable Energies Federation
Upcoming consultations and events
EREF
European Renewable Energies Federation

Ongoing development of new energy market design

EC public consultation process on the new Renewable
Energy Directive (Nov 2015 – Jan 2016)

State of the Energy Union speech of Vice-President
Šefčovič (18 Nov 2015)

Governance?
49
EREF
European Renewable Energies Federation
Other EU Updates - Upcoming meetings
Event
BBH Energy Conference
Energy Dialogue Event
EREF New Year’s
Reception
Content
Place
Date
Brussels
12 Nov 2015
Showcasing local and
national lessons learnt to
Brussels
promote energy transition
18 Nov 2015
15th anniversary of EREF
26 Jan 2016
Climate policy needs
(UNFCCC COP 21); EU
energy system transition;
system integration; and
investment security
Brussels
EREF
European Renewable Energies Federation
EREF Board Meeting
Brussels, 20 October 2015
Dr. Dörte Fouquet
- EREF Representing Director -
EREF
European Renewable Energies Federation
11. Any other business
EREF
European Renewable Energies Federation
EREF New Year’s Reception

15th anniversary

Tuesday, 26 January 2016 (tbd)

Natural History Museum (EP not available anymore)

Invited speakers:



Commissioner Cañete
MEP Claude Turmes
Expected participants: around 100
53
EREF
European Renewable Energies Federation
Thank you for your attention!