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Tenders for renewables in the EU

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Pierre Loaëc, DG Energy, European Commission

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Tenders for renewables in the EU

  1. 1. Verkhovna Rada, 21 February 2019 Pierre Loa�c DG Energy, European Commission Tenders for renewables in the EU
  2. 2. EU has moved to tenders for RES support 2 Transitional phase 2015- 2016 From 2017 Competitive bidding for at least 5% of the planned RES capacity. Competitive bidding for 100% of the planned RES capacity Open to all RES generators and technologies Exemptions from bidding and tech competition possible
  3. 3. Why do we like tenders? 3 1. Market-based price discovery 2. Budget capping / planning 3. Self-regulating phase-out mechanism = avoid over- or under- compensation = avoid uncontrolled open-ended support = no need to define mature vs non-mature
  4. 4. 0 1 2 3 4 5 6 7 8 9 10 Ct/kWh Gebotstermin Durchschnittliche Zuschlagwerte PV- Freifl�chen F�rdersatz EEG2014 Average bid for PV (on the ground) Support level in EEG 2014 Example of solar PV support since introduction of tenders in Germany Date of auction Decline in support costs
  5. 5. 5 Example of offshore wind in Netherlands, Germany and Denmark Decline in support costs
  6. 6. Why avoid over-compensation? 6 For governments: reduce RES support cost for taxpayer / consumer
  7. 7. Why avoid over-compensation? 7 For investors: ensure sustainability of support schemes!
  8. 8. Thank you!

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