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Consumers at the center of the transition

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Placing consumers at the center
of a clean energy transition
Achille Hannoset, European Commission, DG
ENER, Unit B1: Consumers, local initiatives and
just transition
1. Outlook European Energy System
2. Clean Energy Package: putting consumers at the center
3. Role of citizens and communities under REPowerEU
Table of content
• Liberalised and competitive
• Digitalised
• Decentralised and consumer centred
• Integrated
• Decarbonised
1. Outlook European Energy System
2. Clean Energy Package
“Consumers need to be at the centre of a
renewed EU energy system: improved rules will
give them more flexibility and better protect
them, but also allow them to take their own
decisions on how to produce, store, sell or share
their own energy. More control and more access
for consumers will translate into better quality
of life and better finances. And this
democratisation of energy will alleviate energy
poverty and protect vulnerable citizens.”
Clean Energy for All Europeans
Better informed, protected and empowered consumers
Better informed Protected Empowered
• Clearer energy bills • Energy poverty and vulnerable
customers
• Easier switching conditions
• Certified price comparison tool • Price regulation • Reward demand-response
• Access to fit-for-purpose
smart meters
• Information on alternatives to
disconnection
• Prosumers and energy
communities
• Access to data • Out-of-court dispute
settlement
• Wider choice and higher
quality services
Energy communities
Citizen Energy Communities Renewable Energy Communities
• Article 16 Electricity Market Directive
2019/944
• Article 22 Renewable Energy Directive
2018/1999
Art. 2 on definitions: makes clear that renewable energy
communities are a social concept,
rather than financial profits
Ad

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2_Consumers at the center of the transition_SSH.pdf

  • 1. Placing consumers at the center of a clean energy transition Achille Hannoset, European Commission, DG ENER, Unit B1: Consumers, local initiatives and just transition
  • 2. 1. Outlook European Energy System 2. Clean Energy Package: putting consumers at the center 3. Role of citizens and communities under REPowerEU Table of content
  • 3. • Liberalised and competitive • Digitalised • Decentralised and consumer centred • Integrated • Decarbonised 1. Outlook European Energy System
  • 4. 2. Clean Energy Package “Consumers need to be at the centre of a renewed EU energy system: improved rules will give them more flexibility and better protect them, but also allow them to take their own decisions on how to produce, store, sell or share their own energy. More control and more access for consumers will translate into better quality of life and better finances. And this democratisation of energy will alleviate energy poverty and protect vulnerable citizens.” Clean Energy for All Europeans
  • 5. Better informed, protected and empowered consumers Better informed Protected Empowered • Clearer energy bills • Energy poverty and vulnerable customers • Easier switching conditions • Certified price comparison tool • Price regulation • Reward demand-response • Access to fit-for-purpose smart meters • Information on alternatives to disconnection • Prosumers and energy communities • Access to data • Out-of-court dispute settlement • Wider choice and higher quality services
  • 6. Energy communities Citizen Energy Communities Renewable Energy Communities • Article 16 Electricity Market Directive 2019/944 • Article 22 Renewable Energy Directive 2018/1999 Art. 2 on definitions: makes clear that renewable energy communities are a social concept, rather than financial profits
  • 7. Privileges: Access to financial instruments and information Customised support scheme Removal unjustified barriers Regulatory and capacity-building support to public authorities Rights and responsibilities: facilitating market integration (procedures, tariffs and activities) Enabling frameworks energy communities REC REC & CEC
  • 8. Energy communities In case of REC: Proximity of RES installations In case of REC: limited to certain categories of consumers Legal entity required Provide environmental, economic or social benefits Self-consumers Limited to the same building (unless enlarged by MS) Limited to people living in the same building/apartment block (unless enlarged by MS) Legal entity not required by the directive (contract between individuals) No requirement Energy communities and prosumers
  • 9. • Communities and citizens can help to deliver on two out of three objectives of REPowerEU:  Produce clean energy by increasing acceptance and mobilising private capital investments  Save energy by providing energy efficiency services to their members and increasing consumer consciousness of energy use • Self-consumption schemes may help to secure access to affordable energy, including for low- income households 3. Role of citizens and communities under REPowerEU
  • 10. REPowerEU Communication Member States are called upon to “speed up the transposition of the Electricity Directive to effectively allow energy communities to produce, self-consume, sell or share renewable energy”
  • 11. EU Save Energy Communication with recommendations for how citizens and businesses can save around 13bcm of gas imports EU Solar Strategy with measures to accelerate the roll out of solar energy to increase capacity to 600 GW by 2030 Electricity market design Communication to accelerate energy transition and promote flexible self-consumption Biomethane Action Plan to save 17bcm of gas imports, including actions on energy communities Permitting Recommendation to simplify and ease permit granting, grid connection and production licensing procedures Key REPowerEU policy instruments
  • 12. EU objectives and actions under EU Solar Strategy Energy communities facility by 2024 At least one renewables-based energy community in every municipality with a population higher than 10 000 by 2025 Mandatory installation of rooftop solar energy for all public buildings (> 250m²) by 2027 and new residential buildings by 2029
  • 13. Member State actions on communities • Simplify and ease permit granting, grid connection and production licensing procedures • Adapt administrative procedural requirements Burdensome and complex procedural requirements • Integrated One-Stop-Shops to help access financing • Make use of flexibility provided by State Aid Guidelines Difficulties securing financing and support • Non-discriminatory treatment injection tariffs at transmission and distribution level • Introduce time differentiated network tariffs Lack of time and technical expertise Difficulties developing sustainable business models • Integrated One-Stop-Shops to provide technical assistance
  • 14. Member State actions on citizens • Flexibility in State Aid Guidelines • Enable development of local energy trading • Tax exemption for electricity of solar origin Low remuneration for the excess electricity produced • Integrated one-stop-shop service • Design support framework that ensures a predictable payback period, shorter than 10 years A general lack of awareness on how and why Lack of access to renewable energy for energy poor households • Direct public support (reduced VAT) • Support multi stakeholder approaches (net metering) • Encourage innovative financing models (on-bill financing
  • 15. Keep in touch EU Spotify ec.europa.eu/ europa.eu/ @EU_Commission @EuropeanCommission European Commission europeancommission @EuropeanCommission EUTube
  • 16. Thank you – Questions? © European Union 2020 Unless otherwise noted the reuse of this presentation is authorised under the CC BY 4.0 license. For any use or reproduction of elements that are not owned by the EU, permission may need to be sought directly from the respective right holders. Slide xx: element concerned, source: e.g. Fotolia.com; Slide xx: element concerned, source: e.g. iStock.com