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Renewable Energy

Overall state of play:

Evaluation finalised: SWD(2016)416 and 417, 30 November 2016
Commission proposal: adopted on 30 November 2016, COM(2016)767
Legal Act: Adopted Directive (EU) 2018/2001; Date of effect: 24 December 2018

State of play, main conclusions, outlook

Building on the conclusions drawn from the evaluation of the Renewable Energy (RES) Directive, in 2016 the Commission presented a revision of this Directive to establish a regulatory framework for the promotion of renewable energy for the post-2020 period.

The European Council in October 2014 set a binding EU-level target of at least 27% for the share for renewable energy (RES) in final energy consumption in the EU by 2030. The Commission proposal established the target endorsed by the European Council; introduced principles regarding support schemes which will ensure sufficient investor certainty; reinforced consumers' empowerment by recognising the right to self-consume and the role of renewable energy communities; proposed ambitious measures in a number of sectors (electricity, heating and cooling and transport) to tap the renewables potential; and ensured the sustainable use of biomass. The proposal was adopted by the legislators in 2018.

Following the adoption of the European Green Deal and the Climate Target Plan, the Commission tabled, on 14 July 2022, a new proposal to bring the renewable energy framework in line with the higher ambition of “Fit-for-55”. It includes a higher target for renewables for the year 2030 of 40% and several measures to increase renewables in all end-use sectors - electricity, heating and cooling and transport. It furthermore fosters system integration and the production of renewable hydrogen. The proposal also strengthens the sustainability framework for bioenergy.

In May 2022, the Commission proposed in its Communication on the REPowerEU plan (COM/2022/230) to further increase the target to 45% by 2030.

Estimated savings and benefits

The recast Directive was meant to ensure the cost-efficient delivery of the binding EU-level target of at least 27% of renewable energy in the EU's final energy consumption. It was expected to contribute to reducing greenhouse gas (GHG) emissions and air pollution, improving energy security, decreasing the cost of investments in renewable projects and administrative hurdles as well as investor uncertainty, creating jobs in this sector.

State of Play:

Finalised: SWD(2016)416 and 417, 30 November 2016

Scope:

Evaluation of the Renewable Energy (RES) directive (Directive 2009/28/EC on the promotion of the use of energy from renewable sources).

The entire Directive was evaluated with the exception of the reporting, planning and monitoring obligations for Member States and Commission which are covered by the parallel REFIT exercise on monitoring and reporting in the energy acquis.

Evaluation findings:

The Directive has met its main measurable objective (the EU and all but one Member States are currently on track towards its overall renewable energy 20% target for 2020) and overarching policy objectives (GHG reduction, security of supply, competitiveness).

However, the evaluation indicated that cost effectiveness is challenged by 1) lack of clear provisions for biofuel sustainability, 2) lack of detailed guidance on support schemes and cooperation mechanisms, 3) lack of clear and enforceable rules on administrative procedures, and 4) excessive focus on electricity, with weak action in heating and cooling. However, the cost-effective deployment of renewables has been improved by much faster than anticipated technology cost decreases. The Directive scored well with stakeholders concerning the binding common reporting template, less well for administrative costs linked to biofuels sustainability.

State of Play:

Adopted: COM(2016)767 adopted by the Commission on 30 November 2016.

Which objective(s) does the Commission pursue?

The Commission’s 2016 proposal aimed at simplifying and modernising the Directive to make sure it remains fit for purpose. The initiative aimed (jointly with the initiative on Energy Union Governance) at ensuring that the new 2030 EU level target is attained collectively, create the market conditions that allow for the cost-efficient financing and integration of renewable energy into the market, address the remaining challenges with regard to the mainstreaming, deployment, uptake and integration of renewable energy in the EU energy markets and improve the bioenergy sustainability policy.

Estimated savings and benefits

The clearer legal framework aimed to remove uncertainties for investors and the proposed simplification of administrative procedures aimed to reduce administrative burden. This would bring benefits for both producers and investors: renewable energy technology suppliers will keep a leadership role; costs of renewables supply chains would be lowered.

The focus was on creating the right conditions for renewables to thrive and make the EU a flourishing market for clean energy.

State of Play:

Adopted: Directive (EU) 2018/2001, date of effect: 24 December 2018

Outcome of legislative procedure

The final text of the revised Directive contained among other elements:

• Clearer guidance on the use of support schemes and protection of existing investments.

• Further reduction of administrative burden for renewable projects developers.

The objectives of the review of the Renewables Directive proposed by the Commission have been confirmed in the legislative procedure and several provisions have been reinforced as compared to the original Commission proposal thus delivering somewhat more incentives, particularly through reinforced provisions on the overall target and measures supporting the development of renewables in each energy sector.