Recent Legal Developments on EU-Level Options and … · Side Event at the WindEnergy Hamburg...

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Side Event at the WindEnergy Hamburg Deutsch-französisches Büro für die Energiewende/Ostwind Recent Legal Developments on EU-Level – Options and Consequences for Wind Energy Thorsten Müller Hamburg, 28. September 2016 www.stiftung-umweltenergierecht.de

Transcript of Recent Legal Developments on EU-Level Options and … · Side Event at the WindEnergy Hamburg...

Side Event at the WindEnergy Hamburg Deutsch-französisches Büro für die Energiewende/Ostwind

Recent Legal Developments on EU-Level – Options and Consequences

for Wind Energy

Thorsten Müller Hamburg, 28. September 2016

www.stiftung-umweltenergierecht.de

Forschungsstelle Umweltenergierecht

www.stiftung-umweltenergierecht.de

Wie viel Europa steckt im EEG 2014 und im EEG 2017?

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„Mandatory“ direct marketing

No Support in negative price periods of at least six hours Pilot-auctions for

ground mounted PV-installations Opening of the EEG for

installations located in other EU member states General implementation of

auctions for all RES Joint auctions for PV and Wind Onshore

„Innovation Auctions“

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• COM introduced new Guidelines on State aid for environmental protection and energy (EEAG) in 2014 for the period 2014-2020

• Development in Germany was significantly determined by EEAG:

Changes on the Basis of State Aid Guidelines

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EEAG EEG 2014/EEG 2017

Mandatory direct marketing plus market premium

(recital 124 lit. a)

Market premium (§§ 19 I Nr. 1, 20 EEG 2017)

Feed-In-Tarif only for installations up to 100 kW (§§

19 I Nr. 2, 21 I Nr. 1 EEG 2017)

EEAG EEG 2014/EEG 2017

Mandatory direct marketing plus market premium

(recital 124 lit. a)

Market premium (§§ 19 I Nr. 1, 20 EEG 2017)

Feed-In-Tarif only for installations up to 100 kW

(§§ 19 I Nr. 2, 21 I Nr. 1 EEG 2017)

No support in negative price periods (recital 124 lit. c) 6h-rule according to § 24 EEG 2014/§ 51 EEG 2017

EEAG EEG 2014/EEG 2017

Mandatory direct marketing plus market premium

(recital 124 lit. a)

Market premium (§§ 19 I Nr. 1, 20 EEG 2017)

Feed-In-Tarif only for installations up to 100 kW

(§§ 19 I Nr. 2, 21 I Nr. 1 EEG 2017)

No support in negative price periods (recital 124 lit. c) 6h-rule according to § 24 EEG 2014/§ 51 EEG 2017

Granting aid via a competitive bidding process:

• Transitional phase 2015/2016

(recital 126 Abs. 1)

• From 01.01.2017: General implementation of

technology-neutral bidding processes for all

RES technologies (recital 126 Abs. 2)

Step by step implementation of auctions:

• Pilot-auctions (§ 2 V EEG 2014 und FFAV)

• Technology-specific auctions for

Wind/PV/Biomass starting 2017

(§ 22 EEG 2017)

• Joint auctions for Wind/PV (§ 39i EEG 2017)

and innovative auctions (§ 39j EEG 2017) to be

implemented via ordinance until 01.05.2018

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• EEG not considered as state aid since ECJ PreussenElektra (2001), but back into COM focus since 2010/2011:

– EEG 2012 (SA.33995, 25.11.2014):

o Action for annulement of German government rejected by the Court of First Instance (T-47/15, 10.05.2016), decision appealed to the ECJ on 19.07.2016 by the German government.

– EEG 2014 (SA.38632, 23.07.2014):

o No appeal, decision (de facto) accepted by German government, although EEG 2014 was only notified as Non-State Aid previously.

– EEG 2017:

o No COM decision yet, but decision of compatability with state aid rules generally expected. Obvious COM influence in EEG 2017: Last minute introduction of joint auctions for Wind/PV (§ 39i) and technology neutral innovative auctions (§ 39j).

Starting Point: EEG = State Aid

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• The concrete drafting of the provisions in the EEG 2014/2017 shows, that the decisions of the German government and legislator were not only determined by EU law.

• Leeway offered by EEAG is not fully exhausted by EEG 2017:

– Mandatory direct marketing already starting from 100 kW, EEAG requirement not until 500 kW, repectively 3 MW for wind energy.

– Auctions for all PV and wind installations more than 750 kW, EEAG allow for exceptions for less than 1 MW, repectively up to 6 generation units with an overall capacity of 18 MW (36 MW) for wind energy.

• But compared to EEAG rules improvements have been made in some other points (6-hours-rule, support period).

EU not the only reason for the developments

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• EEG 2017 includes plans for joint auctions for PV and wind energy starting 2018, § 39i:

– 400 MW per year

– Details to be determinded via ordinance until 01.05.2018

• Furthermore EEG 2017 provides for innovative auctions starting 2018 (§ 39j) , not only for PV and wind energy, but also comprising other components.

– 50 MW per year

– Details to be determinded via ordinance until 01.05.2018

• Questionable, if these types of auctions can or will serve as a blue print for the future auction design

The end of technology specific auctions?

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• Recital 126 EEAG stipulates that the bidding process can only be limited to specific technologies “where a process open to all generators would lead to a suboptimal result which cannot be addressed in the process design”.

• In particular only 5 reasons are acknowledged: „a. the longer-term potential of a given new and innovative

technology; or b. the need to achieve diversification; or c. network constraints and grid stability; or d. system (integration) costs; or e. the need to avoid distortions on the raw material markets

from biomass support.“

Do the EEAG demand for technology neutral auctions?

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• EEG 2017 includes a possibility to support installations located outside of Germany

• EEAG do not require Member States to open up their supprt schemes to installations located in other Member States.

– But COM will “consider positively schemes that are open to other EEA or Energy Community countries”, recital 122.

• Furthermore COM uses the prohibition of customs duties or charges having an equivalent effect according to Art. 30/110 TFEU to „crack“ nationally restricted support schemes and enter into an EU-wide opening.

Europeanisation of Support?

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• Germany therefore has committed itself to open the EEG :

– Pilot-opening according to § 2 VI EEG 2014 in combination with the Cross-Border Renewable Energies Ordinance (Grenzüberschreitende-Erneuerbare-Energien-Verordnung, GEEV):

o First opened auction for ground-mounted PV still planned for 2016 : Cooperation partner Denmark. (Cooperation agreement signed on 20.07.2016).

– Extension to all technologies according to EEG 2017:

o § 5 para II-VI determine the conditions for cross-border auctions in cooperation with other Member States.

o § 88a contains an authorization to issue an ordinance for cross-border auctions.

• Opening only up to 5% and under strict conditions, e.g. an international treaty. For the time being, Germany is therefore in charge of the procedure.

Design of opened auctions according to EEG 2017

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• EEAG rules had significant impacts on the EEG and enforced formative system changes.

• This can be seen as as a starting point for further developments resulting in further significant changes.

• The coming revision of the Renewable Energies Directive has the potential to strengthen or even accelerate this development.

Outlook: Revision of the Renewable Energies Directive

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• Info | Stiftung Umweltenergierecht informs you regularly about latest developments

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Keep up to date

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16. Würzburger Gespräche zum Umweltenergierecht

Berlin, Paris, Brüssel – Neues Energierecht im Kontext von internationalem Klimaschutz und Europäisierung

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Thorsten Müller Chairman of the Foundation Board und Research Director Ludwigstraße 22 97070 Würzburg Tel.: +49 9 31.79 40 77-0 Fax: +49 9 31.79 40 77-29 E-Mail: [email protected] Internet: www.stiftung-umweltenergierecht.de

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