EU RES Policy on the Move? Waiting for the New EU Renewable Energy Communication and the European Council on Energy

On 31 January the European Commission will adopt a new Communication on renewable energy, in accordance to its reporting obligation in Directives 2001/77/EC, Directive 2003/30/EC (formerly), and now Directive 2009/28/EC. The Communication is aimed to report on the progress made in the promotion of renewable energy at EU and Member State levels, based on the 2010 targets defined in the 2001 and 2003 Directives. Support schemes will also be covered in the Communication.

Earlier this week, the European Commissioner responsible for Energy, Günther Oettinger, has made several statements as regards the EU policy. In particular, his address to the ITRE Committee of the European Parliament on 26 January (video available here) served as forewords to the European Council on Energy planned on 4 February in Brussels.

Waiting for the Renewable Energy Communication of 31 January

Some EU Member States are currently reviewing their support schemes, such as Germany, Spain, The Netherlands (and Norway at EEA level). Regional initiatives have been launched in the area of offshore wind (see previous post on the North Seas Countries' Offshore Grid Initiative). In that context, two key issues have dominated the declarations this week: innovative financing instruments and coordination/convergence.

During the Commissioner's intervention at the ITRE Committee, some MEPs underlined the need for innovative financing instruments for renewables. It looks like the Communication of 31 January will come with some proposals here. It should in particular list different financing structures for renewables, in a European perspective. The Commissioner took the example of offshore wind parks and the need to clarify and coordinate the national support schemes where MSs are participating to common renewable infrastructure projects. Regional renewables initatives of cross-boder dimension will establish regional markets, where the source and modalities of financing should be at least coordinate in order to be coherent and deliver.

Reuters reports that the forthcoming Communication estimates that "the EU could save 10 billion euros a year by harmonizing such scheme." It would be surprising that the Commission comes with strong harmonisation proposals, in particular after the adoption of Directive 2009/28/EC. The "convergence" perspective seems more plausible. What should be done in matter of "convergence" in addition to the cooperation's mechanisms defined in the Directive will be interesting to read on Monday.

A few months ago, the concept of "EU project bonds" was launched by Commission's President Barroso in his State of the Union Address in 2010. These EU project bonds could be launched in cooperation with the European Investment Bank (EIB), where the EIB is replacing private investors and buying bonds (see article Euractiv). The idea was not particuarly warmly welcome, either for renewables or more specifically for large energy infrastructure projects.

Waiting for the Energy European Council of 4 February

In addition to renewables, the Commissioner underlined the main topics on the working agenda of the Commission in the next months, and to be discussed on 4 February:

• a Commission's proposal for a European Energy Efficiency Action Plan to come on 2 March;
• towards implementation and enforcement of the internal energy market, with a new report to come, that should include technical measures, infringement procedures, but not immediately a fourth liberalisation package;
• financing of energy infrastructures of interest for the whole EU;
• energy research;
• smart grids and communities.