As part of its efforts to bring down the cost of electricity supply and make electricity bills more affordable for Europeans, the Commission has today provided new guidance to EU countries. It will facilitate the uptake of innovative renewable energy sources and forms of deployment, accelerate the rollout of grids and storage infrastructure and design future-proof electricity network charges.
The recommendation and 3 guidance documents will support the implementation of the revised Renewable Energy Directive and Electricity Market Design, as well as the Action Plan for Affordable Energy set out earlier this year to lower energy costs by accelerating the clean energy transition.
EU countries and the national energy regulators are invited to consider these support documents when designing national frameworks on these matters. The Commission stands ready to assist them in their efforts.
Accelerated deployment of new types of renewable energy and forms of deployment
Innovative renewable energy technologies such as ocean energy and floating offshore wind, as well as innovative forms of deployment of renewable energy such as agrisolar, floating solar and vehicle-integrated PV, have important potential, which is currently not being sufficiently tapped into. To support their roll-out, EU countries should develop clear regulatory frameworks. This will help provide legal certainty and facilitate their uptake. EU countries should design a financial framework for the support of renewable energies which is adapted to the specific needs of these technologies and forms of deployment. If applied, this will reduce the gap between the costs of these new types of renewable energy and those of conventional forms of deployment, fostering their development. EU countries should also encourage continued research and innovation to explore their potential benefits and clarify their environmental impacts.
Faster procedures for grids and storage roll-out
The expected development of the electricity system in terms of growth in renewable energy generation, electricity demand and grid constraints requires the urgent expansion and reinforcement of the grids, combined with the accelerated deployment of storage solutions. EU countries are encouraged to facilitate this by means of designating areas for grid and storage infrastructure. Grids and storage projects located in these areas may then be exempted from certain types of environmental assessments.
Future-proof electricity network charges to reduce energy system costs
The necessary investments in renewable energy sources, grids and storage solutions require more flexibility and efficiency in the way the electricity grids are used and managed, to ensure their cost-effective operation. Energy regulators should design tariffs that reflect the needs of the electricity system and make the best use of the existing infrastructure by incentivising flexibility and encouraging consumers to use electricity when it is cheap to do so.
Background
Europe’s high energy costs are heavily influenced by its dependence on imported fossil fuels. Expanding the amount and range of renewable energy sources would help reduce the costs of energy supply and energy prices for industry and citizens. To make this a reality, it is necessary to significantly accelerate the roll out of renewable energy projects, including innovative forms of deployment and innovative renewable energy technologies. Moreover, there is an urgent need to develop energy infrastructure enabling the uptake of the renewables, security of supply and market integration.
Earlier this year, the Commission put forward an Action Plan for Affordable Energy to lower energy costs, complete the Energy Union, attract investments and be better prepared for potential energy crises. As a key component of the Clean Industrial Deal, this Plan will not only bring relief to households facing high energy bills, but also to industries that struggle with high production costs, with estimated overall savings of €45 billion in 2025, that will progressively increase until €130 billion in annual savings by 2030 and €260 billion by 2040.
Dan Jørgensen, Commissioner for Energy and Housing, said:
‘The clean energy transition is not just a moral obligation towards our planet: it is a matter of security and independence for Europe. Lower energy prices and a secure energy system with a high share of renewables are the backbone of a sustainable and competitive economy. With this new guidance to our Member States, we are showing the way towards a cleaner, cheaper and more efficient energy system.’
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