Considerations on COM(2023)763 - Amendment of Regulation (EU) 2022/2577 laying down a framework to accelerate the deployment of renewable energy - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2023)763 - Amendment of Regulation (EU) 2022/2577 laying down a framework to accelerate the deployment of renewable energy. |
|---|---|
| document | COM(2023)763 |
| date | December 22, 2023 |
(2) Directive (EU) 2023/2413 of the European Parliament and the Council, which amends Directive (EU) 2018/2001 of the European Parliament and the Council entered into force on 20 November 2023, introducing changes to the legislative framework regulating renewable energy until 2030 and beyond, including provisions to streamline permitting procedures applicable to renewable energy projects. Some of the measures introduced by Regulation (EU) 2022/2577 were included by Directive (EU) 2023/2413 in Directive (EU) 2018/2001. However, the Directive did not mirror some of the more exceptional measures contained in Regulation (EU) 2022/2577, thus delimiting their exceptional and temporary nature. Instead, the Directive introduced a stable and long-term permanent regime to accelerate permit-granting procedures which establishes dedicated steps and procedures which require a longer implementation time. Member States have the obligation to transpose it by 21 May 2025, with the exception of some of the provisions regulating permit-granting procedures, which have an earlier transposition date on 1 July 2024, immediately after the expiry of the validity of Regulation 2022/2577. Following the transposition of this Directive, renewable energy projects will benefit from the provisions introduced by this Directive to streamline permit-granting procedures.
(3) Pursuant to Article 9 of Regulation (EU) 2022/2577, the Commission had to carry out a review of this Regulation by 31 December 2023 at the latest, in view of the development of the security of supply and energy prices and the need to further accelerate the deployment of renewable energy, and submit a report on the main findings of that review to the Council. The same article also provides that, based on that review, the Commission may propose the prolongation of Regulation (EU) 2022/2577.
(4) In its Report [add footnote to report], the Commission found that the conditions for a prolongation were met and proposed to prolong selected measures that have the greatest potential for renewables acceleration and are different from the ones included by Directive (EU) 2023/2413 in Directive (EU) 2018/2001 and appear to bring about an important acceleration to the permitting of renewable energy and related grid projects or have a significant potential to do so. The fact that Directive (EU) 2023/2413 introduces in Directive (EU) 2018/2001 some provisions to streamline permitting procedures applicable to renewable energy projects, including rules on the same or similar topics as those covered by Regulation (EU) 2022(2577 was taken into account. That permitting rules introduced by Directive (EU) 2023/2413, except those related to renewables acceleration areas pursuant to Articles 15c and 16a of that Directive, have to be transposed by 1 July 2024, immediately after the expiry of the validity of Regulation (EU) 2022/2577 was also taken into account.
(5) Since the entry into force of Regulation (EU) 2022/2577, the level of preparedness in the electricity market and the Union’s security of supply have improved. However, severe risks persist for the Union’s security of energy supply. The global situation on the gas market remains very tight. Gas prices are still considerably higher than pre-crisis with inevitable consequences on Union citizens’ purchasing power and the competitiveness of European businesses. This is exacerbated by high market volatility stemming inter alia from tense geopolitical environment. Recent episodes of significant price volatility in summer and autumn 2023, when prices increased by more than 50% within a few weeks, caused by events such as the strike in Australian LNG facilities, the Middle East crisis and the disruption of the Balticconnector, show that markets are still fragile and vulnerable to even relatively small shocks on demand and supply. Under these conditions, the fear of scarcity resulting from even an isolated event may trigger negative systemic reactions across the EU with serious repercussions on energy prices. Furthermore, due to the significant decrease in Russian pipeline gas imports over the past year, availability of gas supplies to the Union is considerably reduced compared to pre-crisis. With the current level of pipeline gas imports, the Union is expected to receive approximately 20 bcm of Russian gas - approximately 110 bcm less than in 2021. Therefore, a serious risk remains that gas shortages will occur in the Union.
(6) Global gas markets remain very tight and are expected to remain tight for a certain time. As noted by the IEA,11 global LNG supply grew only modestly in 2022 (4%) and in 2023 (3%). Although, new LNG capacities are set to come online as of 2025 the IEA expect that market balances will remain precarious in the immediate future.12
(7) These severe difficulties are exacerbated by a number of additional risks, including a rebound in Asian LNG demand reducing the availability of gas on the global gas market, a cold winter that could lead to an increase of gas demand of up to 30 bcm, extreme weather events potentially affecting the hydropower storage and nuclear production due to low water levels, and the subsequent increase in demand for gas-fired power generation. Additional risks result from further disruptions of critical infrastructures, such as acts of sabotage against the Nord Stream pipelines in September 2022 and the disruption of the Baltic connector pipeline in October 2023, deterioration of the geopolitical environment, in particular in regions relevant for EU energy security of supply, such as Ukraine, Azerbaijan, and the Middle East.
(8) Given the current tight supply and demand balance, even a moderate disruption to the supply of energy can have wide impacts on the gas and electricity prices and cause serious and lasting harm to the European economy, affecting its competitiveness, and to the citizens of the Union. The current situation is therefore exposing the entire Union to risks of energy shortage and high energy prices.
(9) An accelerated deployment of renewable energy played an essential role in the Union strategy to address the energy crisis and has been instrumental in increasing security of supply and in protecting consumers from price volatility by reducing the Union’s overall gas demand. The International Energy Agency estimated that average wholesale electricity prices would have been 8% higher in all European markets in 2022 without the additional installed renewable capacities.13 In 2022, higher electricity production from renewable energy sources replaced ca. 107 TWh of fossil-based electricity generation - equivalent to ca. 10 bcm of gas, which led to estimated savings of more than EUR 10 billion.
(10) While Regulation (EU) 2022/2577 has been in force for a limited period of application, the Commission’s report has shown that it has positively contributed to accelerate the pace of deployment of renewable energy sources in the Union, notably by streamlining the procedures applicable to specific permit-granting processes, and by raising political awareness regarding the importance of accelerating permitting for renewables. While most of the effects of the Regulation will be visible in the months to come, initial available data on the production, deployment and permitting of renewable energy and related infrastructure projects for the period after the entry into force of the Regulation suggests acceleration, at least in some Member States. According to Eurostat, in the first half of 2023, renewable energy production in the Union was record high replacing further gas volumes.14 The Commission’s report also highlights positive developments in terms of increase in renewable energy deployment in the months following the entry into force of Regulation 2022/2577. According to initial industry data, the EU has installed in three quarters of 2023 more solar photovoltaic capacities than in the whole 2022. Wind capacity also significantly increased in several Member States. Available data gathered in the Commission’s report also signals that several Member States have experienced double-digit increases in the volume of permits issued for renewable energy projects since the entry into force of the Regulation. Additionally, at least in one Member State, grid projects important for increased penetration for renewables and amounting to over 2000 km in total are also benefitting from accelerated permitting.
(11) Given that risks for energy supplies and prices persist, a quicker pace of deployment of renewable energy projects will still be needed for a certain period after the end of June 2024, to phase out the remaining Russian gas imports. There is no doubt that higher shares of energy from renewable sources would strengthen the Union’s resilience even further. Moreover, the quicker the rollout of renewables, the higher the positive impact on the Union’s resilience, security of energy supply, energy prices and independence from Russian fossil fuels would be.
(12) Due to the urgent and still unstable energy situation which the Union is facing, it is necessary to prolong specific provisions of Regulation (EU) 2022/2577, namely those which have shown the greatest potential for immediate acceleration of renewable energy sources and which are different from the measures included in Directive (EU) 2018/2001, therefore ensuring that the prolongation of Regulation (EU) 2022/2577 is not duplicating that Directive. Moreover, those measures include appropriate safeguards to ensure environmental protection in the form of specific conditions for their application. These measures shall apply in parallel to this Directive, complementing it with additional emergency measures for a limited period of time. Not prolonging the Regulation would create a risk of slowing down the pace of permitting and deployment of renewables and related infrastructure, in particular in Member States which have made extensive use of this Regulation. For example, according to Germany, the installation of around 41 GW of wind power onshore could be delayed and take approximately two years longer or in some cases halted altogether without a prolongation of the Regulation, in particular its Article 6. Speed of permitting of a number of planned large transmission grid projects totalling thousands of kilometres in length would equally be slowed down, by estimated one up to three years.
(13) One of the temporary measures introduced by Regulation (EU) 2022/2577 which has shown positive effects and which has a significant acceleration potential in the future is the introduction in Article 3(1) of a rebuttable presumption that renewable energy projects are of overriding public interest and serving public health and safety for the purposes of specific derogations foreseen in the relevant Union environmental legislation, except where there is clear evidence that those projects have major adverse effects on the environment which cannot be mitigated or compensated for. Directive (EU) 2018/2001 establishes in its Article 16f a rebuttable presumption that renewable energy projects are of overriding public interest and serving public health and safety, with almost identical wording to Article 3, first paragraph of Regulation (EU) 2022/2577. Therefore, it is not necessary to prolong the application of the first paragraph since such presumption will apply by virtue of Article 16f of Directive (EU) 2018/2001.
(14) However, Article 3 contains a second paragraph which calls to give priority to the projects that are recognised as being of overriding public interest whenever a balancing of legal interests is required in the individual case and introduces additional compensation requirements for species protection. This paragraph is not included in Directive (EU) 2018/2001. The first sentence of Article 3, second paragraph of Regulation (EU) 2022/2577 has the potential to further accelerate renewable energy projects since it requires Member States to promote them by giving them priority when dealing with different conflicting goods beyond environmental matters. The Commission’s report has shown the value of this provision which recognises the relative importance of renewable energy deployment in the current difficult energy context beyond the specific objectives of the derogations foreseen in the environmental Directives referred to in Article 3(1). Therefore, it is appropriate to prolong its application in order to appropriately recognise the crucial role played by renewable energy plants to fight climate change and pollution, reduce energy prices, decrease the Union’s dependence on fossil fuels and ensure the Union’s security of supply in the context of balancing of legal interests carried out by permitting authorities or national courts.
(15) As shown in the Commission’s report, challenges exist in the application of another condition to apply specific derogations foreseen in the Union environmental legislation requiring the absence of other alternative solutions for the purposes of the application of specific derogations. Such challenges limit the practical usefulness of the presumption that renewable energy projects are of overriding public interest, because it is a considerable hurdle to prove that a project could not take place elsewhere, if the territory of a whole country has to be considered, and even more if other renewable energy technologies have to be considered. Therefore, in order to speed up the deployment of renewables, it is appropriate to allow Member States to temporarily limit the scope of the relevant alternative conditions that have to be considered. For the purposes of the relevant Union environmental law, in the necessary case-by-case assessments to ascertain whether there are satisfactory alternative solutions to the specific renewable energy project, Member States should be able to limit the assessment to those alternatives that ensure the achievement of the same objectives as the project in question, namely in terms of deployment of renewable energy capacity using the same renewable energy technology, within the same or similar timeframe and without resulting in significantly higher cost. When comparing the timeframe and cost of satisfactory alternative solutions, Member States should take into account the need to deploy renewable energy in an accelerated and cost-effective manner in accordance with the priorities set out in their integrated national energy and climate plans submitted pursuant to Articles 3 and 14 of Regulation (EU) 2018/1999 and the expected speed to achieve them.
(16) Another provision with potential for significant acceleration of the pace of deployment of renewable energy sources is to be found in Article 5(1) of Regulation (EU) 2022/2577, which imposes a six-month maximum deadline for repowering of existing renewable energy plants. Repowering existing renewable energy plants has a significant potential to rapidly increase renewable power generation, thus allowing to reduce gas consumption. It enables the continued use of sites with significant renewable energy potential, which reduces the need to designate new sites for renewable energy projects. Repowering a wind energy power plant with more efficient turbines usually allows the existing capacity to be maintained or increased but with fewer, bigger and more efficient turbines. Repowering also benefits from the existing grid connection, a likely higher degree of public acceptance and knowledge of environmental impacts.
(17) The Commission found in its review that there is scope for further streamlining the permit-granting process applicable to the repowering of renewable energy projects, in particular in those Member States with greater repowering potential. Directive (EU) 2023/2413 introduces several provisions in this regard into Directive (EU) 2018/2001, including maximum permitting deadlines. Article 16b of Directive (EU) 2018/2001 introduces a maximum deadline of one year for the repowering of projects located outside renewable acceleration areas, while Article 16a of that Directive includes a six-month deadline for projects located within the renewables acceleration areas. Given that the implementation deadline for the designation of renewable acceleration areas is 27 months from the entry into force of the Directive (meaning these areas would have to be designated by 20 February 2026), and even if those areas can be designated earlier, it is appropriate to prolong the application of Article 5(1) of Regulation (EU) 2022/2577. This prolongation includes a targeted amendment regarding the scope of this provision, in order to limit its application to the areas identified pursuant to Article 6 of Regulation (EU) 2022/2577. Prolonging the application of Article 5(1) of that Regulation, together with the application of its Article 6, would ensure that an ambitious permitting deadline applies immediately for the repowering of projects located in the specific areas identified by Member States voluntarily under this Regulation, while the maximum deadlines for the repowering of projects contained in Directive (EU) 2018/2001 would apply to the rest of the territory. Moreover, this is consistent with the differentiation introduced by Directive (EU) 2023/2413 between renewables acceleration areas and areas not having such a status.
(18) Article 6 of Regulation (EU) 2022/2577 allows Member States, under certain conditions to ensure environmental protection, to introduce exemptions from certain environmental assessment obligations set in Union environmental legislation for renewable energy projects and for energy storage projects and electricity grid projects that are necessary for the integration of renewable energy into the electricity system. The application of this provision is optional for Member States and provides them with an effective tool to accelerate the deployment of renewable energy and the related infrastructure projects by ensuring a careful balance between the need to deploy renewables at a much faster speed and the need to ensure protection of environmentally sensitive areas. As explained in the Commission report, this Article has led to tangible positive results both in terms of number of successful renewable and grid projects that are being deployed, and of acceleration potential and shortening of permitting time in the Member States that have made use of it. According to the findings of the Commission’s report based on estimates provided by Member States and stakeholders, such acceleration could range from several months to even up to three years for offshore projects.
(19) Based on the evidence gathered in the Commission’s report, prolonging Article 6 of Regulation (EU) 2022/2577 appears necessary to ensure an immediate strong acceleration of renewable energy projects. Such Article can and should co-exist, for a limited period, with the provisions included in Directive 2018/2001 regarding the designation of renewable acceleration areas (Article 15c) and areas for grid and storage infrastructure necessary to integrate renewable energy into the electricity system (Article 15e).
(20) Article 15c of Directive (EU) 2018/2001 imposes the obligation on Member States to designate renewable acceleration areas for one or more renewable energy technologies within a deadline of 27 months from the entry into force of Directive (EU) 2023/2413. Even if Member States can designate renewables acceleration areas from the moment Directive (EU) 2023/2413 entered into force, without waiting to its transposition deadline, this designation requires time, which is expected to be longer than the time needed to designate the dedicated areas referred to in Article 6 of Regulation (EU) 2022/2577. This is because this provision does not require to establish upfront as part of the plan designating renewable accelerations areas appropriate rules for these areas on effective mitigation measures to be adopted for the installation of renewable energy plants and co-located energy storage in those areas and it does not introduce specific procedures to be followed in those areas. Therefore, in order to further facilitate the construction of renewable energy projects during a temporary period, the application of Article 6 should be prolonged, so that it is possible for Member States to designate specific areas in a streamlined manner, without prejudice to the possibility to designate in parallel renewable acceleration areas pursuant to Article 15c of Directive (EU) 2018/2001 in order to ensure that such areas are set up within the deadline prescribed in the Directive.
(21) Article 15e of Directive (EU) 2018/2001 includes a provision granting Member States the possibility to designate areas for grid and storage infrastructure necessary to integrate renewable energy into the electricity system under certain conditions. In view of the optional nature of Article 6 of Regulation (EU) 2022/2577 and Article 15e of Directive (EU) 2018/2001, there is no legal risk of contradiction since Member States can decide which provision to apply or even apply both during the period of application of that Regulation in order to identify different grid areas in parallel, following the different conditions set in those legal acts, respectively.
(22) The provisions of the United Nations Economic Commission for Europe (UNECE) Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (‘the Aarhus Convention’) regarding access to information, public participation in decision-making, and access to justice in environmental matters, and in particular, the obligations of Member States relating to public participation and to access to justice, remain applicable.
(23) The principle of energy solidarity is a general principle under Union law and applies to all Member States. In implementing the principle of energy solidarity, the proposed measures allow for cross-border distribution of the effects of faster deployment of renewable energy projects. The measures apply to renewable energy installations in all Member States and capture a wide scope of projects. Given the degree of integration of Union energy markets, any increase in renewable energy deployment in a Member State should be beneficial also for other Member States in terms of security of supply and lower prices. It should help renewable electricity flows across the borders to where it is most needed and ensure that cheaply produced renewable electricity is exported to Member States where the electricity production is more expensive. In addition, the newly installed renewable energy capacities in the Member States will have an impact on the overall gas demand reduction across the Union.
(24) Article 122(1) TFEU enables the Council to decide, without prejudice to any other procedures provided for in the Treaties, on a proposal from the Commission and in a spirit of solidarity between Member States, upon the measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of certain products, notably in the area of energy. In view of those considerations, the urgent and still unstable energy situation and the urgent need to immediately accelerate of renewable energy sources as an instrument to mitigate the risks on the energy supply and volatility of energy prices that still exist, constitutes such a situation. Moreover, it is necessary to take into account the approaching end of the mandate of the European Parliament, the time required to adopt legislation under the ordinary legislative procedure, as well as the need for Member States and investors to have predictability and legal certainty about the legal framework. A prolongation by one year of some provisions of Regulation (EU) 2022/2577 and the addition of a new provision is necessary to respond to the ongoing situation and it is therefore justified to have Article 122(1) TFEU as the legal basis for this Regulation.
(25) The need to act is urgent as Regulation (EU) 2022/2577 will cease to apply on 30 June 2024 and investors and authorities need to have clarity as soon as possible as regards the legal framework applying thereafter to secure their investment decisions and plan their projects accordingly. Therefore, it is appropriate to adopt the prolongation of that Regulation some months before the end of its application. In addition, due to the inclusion of a new provision, this Regulation should enter into force as a matter of urgency on the day following that of its publication in the Official Journal of the European Union.
(26) The application of the concerned provisions should be extended temporarily and should, together with the new provision added, remain in force until 30 June 2025.
(27) Since the objective of this Regulation cannot be sufficiently achieved by the Member States, but can rather be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.
(28) Regulation (EU) 2022/2577 should therefore be amended accordingly.