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Auctions for RES support - the convincing list of pros

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Dr. Marie-Therese Richter-Kuhnert, Energy Lawyer, Energy Community Secretariat

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Auctions for RES support - the convincing list of pros

  1. 1. Energy Community SecretariatEnergy Community Secretariat Dr. Marie-Therese Richter-Kuhnert, LL.M. Auctions for RES support – the convincing list of pros Energy lawyer, Energy Community Secretariat Auction support scheme for RES, 21 February 2019, Kiev 1
  2. 2. Energy Community SecretariatEnergy Community Secretariat 2 Basis and benchmark for compliance RES Directive 2009/28/EC on the promotion of the use of energy from renewable sources Will be replaced by Clean Energy Package European Commission Guidelines on State aid for environmental protection and and energy 2014-2020 („EEAG“) Extended until 2022 Auction support scheme for RES, 21 February 2019, Kiev
  3. 3. Energy Community SecretariatEnergy Community Secretariat Article 18 EnCT “1. The following shall be incompatible with the proper functioning of the Treaty, insofar as they may affect trade of Network Energy between the CP: … (c) any public aid which distorts or threatens to distort competition by favouring certain undertakings or certain energy resources. 2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the application of the rules of Articles [101, 102 and 107 TFEU] (attached in Annex III).” Article 19 EnCT “With regard to public undertakings and undertakings to which special or exclusive rights have been granted, each CP shall ensure that as from 6 months following the date of entry into force of this Treaty, the principles of the [TFEU], in particular Article [106 (1) and (2)] thereof (attached in Annex III), are upheld.” 3 Obligation under the ECT Auction support scheme for RES, 21 February 2019, Kiev
  4. 4. Energy Community SecretariatEnergy Community Secretariat 4 Benchmark for compliance European Commission Guidelines on State aid for environmental protection and and energy 2014-2020 -> Market integration of RES Means: - Obligation to sell to the market - Competitive bidding procedure - Balancing responsibility Defines standards for compliance of state support to RES with State aid acquis Auction support scheme for RES, 21 February 2019, Kiev
  5. 5. Energy Community SecretariatEnergy Community Secretariat • Competitive bidding process for determination of • Privileged producers and • Level of support • Rule, with exceptions • Premium on top of market price • Except for small producers • Balancing responsibility • in case of liquid IDM Main aspects of reform of RES support Auction support scheme for RES, 21 February 2019, Kiev
  6. 6. Energy Community SecretariatEnergy Community Secretariat • For NEW projects • For ALL technologies • Except for small installations • Except for limited circumstances Mandatory competitive bidding process -> predictability -> market integration -> driving level of support down 6 Competitive bidding process Auction support scheme for RES, 21 February 2019, Kiev
  7. 7. Energy Community SecretariatEnergy Community Secretariat - Reveal costs - „right level“ of support - Ensures cost-efficient development - Drives down costs for consumers - Transparency and objectivity - State Aid Guidelines - Reduction of regulatory risk - Level playing field 7 Competitive bidding - Why Auction support scheme for RES, 21 February 2019, Kiev
  8. 8. Energy Community SecretariatEnergy Community Secretariat 8 Multi-facetted approach - Create understanding for purpose of compliant support - Change of attitude - Promotion of market integration - Process needs support by all stakeholders - First step ... Auction support scheme for RES, 21 February 2019, Kiev
  9. 9. Energy Community SecretariatEnergy Community Secretariat 9 www.energy-community.org Thank you for your attention! Auction support scheme for RES, 21 February 2019, Kiev

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