Comparative Assessment of Enabling Frameworks for RECs and Support Scheme Designs
Creators: name: Krug, Michael
name: Alonso, Irene
name: Anfinson, Kellan
name: Azevedo, Isabel
name: del Bufalo, Nicoletta
name: Di Nucci, Maria Rosaria
name: Dyląg, Anna
name: Gatta, Vincenzo
name: Massa, Gilda
name: Meynaerts, Erika
name: Klavs, Gaidis
name: Kudrenickis, Ivars
name: Laes, Erik
name: Maleki-Dizaji, Pouyan
name: Pappa, Stavroula
name: Rueda, Francisco
name: Schwarz, Lucas
name: Standal, Karina
name: van Maria, Kelsey
name: Vasintjan, Dirk
Publisher: name: Zenodo
Year: 2022
Subjects: Renewable energy communities
Community energy
Energy policy
Transposition

description: With the ‘Clean Energy for all Europeans’ package the European Commission intended to put consumers ‘at the heart’ of EU energy policies. The recast of the Renewable Energy Directive (RED II) acknowledged the importance of energy communities for the energy transition. It includes new provisions for renewable energy communities (RECs) empowering them to participate in the energy market. By 30 June 2021, Member States were requested to transpose the definition of RECs, their rights and duties and develop enabling frameworks. Furthermore, Member States shall take into account the specificities of RECs when designing support schemes in order to allow them to compete for support on an equal footing with other market participants. This document, Deliverable 7.1 of the Horizon 2020 project COME RES, analyses the progress in transposing and implementing the provisions contained in RED II that apply to RECs in the nine COME RES countries, namely Belgium (Flanders), Germany, Italy, Latvia, the Netherlands, Norway, Poland, Portugal and Spain. The aim of the report is to provide an updated and detailed review of the enabling frameworks for RECs as specified in Art. 22(4) of RED II and to scrutinise the extent to which the analysed countries consider the specificities of RECs when designing support schemes for renewable energy sources, pursuant to Art. 22(7) of RED II. In addition to the qualitative assessment, the COME RES partners carried out a quantitative assessment of the transposition performance. This covers three sections: (1) definition, rights and market activities of RECs, (2) key elements of enabling frameworks pursuant to RED II Art. 22(4) and (3) the consideration of REC specificities in support scheme designs and other economic incentives. The individual country reports and the calibration table can be found in the annex of this report. Methodologically, the individual country policy assessments are mainly based on desk research, particularly analysis of legal documents, including the integrated National Energy and Climate Plans (NECPs), and secondary literature. They also integrate observations and interim findings of the country desk events in the COME RES partner countries. This report takes into account the policy developments until 15 July 2022. Progress and performance of transposition varies considerably among the analysed countries. Thus, Belgium (Flanders) and Italy have made the most progress in transposing the definitions, rights, obligations and market activities of RECs. Portugal and Spain have also made good progress, but there are still several key provisions which are not transposed or specified yet. In Latvia, amendments to relevant laws containing key provisions of RECs and citizen energy communities (CECs) have been adopted in July 2022. These amendments provide a general framework; many details have to be worked out by subsequent governmental regulations. Although in Germany ownership of renewable energy installations by individuals or communities has a long tradition, the previous Federal government failed to timely and properly transpose the RED II and its provisions for RECs. Under the new government, the transposition process and the creation of an enabling framework gained momentum, but important transposition gaps still remain (e.g., energy sharing). In the Netherlands, only a draft legislation exists and merges RECs and CECs into one concept. Most criteria of the RED II definition of RECs are covered in the draft legislation. In Poland, transposition is lagging behind compared to other COME RES countries. In Norway, the EU Directives do not automatically apply, but rather depend on negotiations between the EU and the EEA/European Free Trade Association (EFTA). Currently, RED II is still under review by the EEA/EFTA. In spite of some positive developments in the field of collective self-consumption at the building/block level, much work is still necessary to transpose the requirements of RED II. Formal compliance with the provisions of RED II and literal transposition of the key principles and criteria (“copy and paste” approach) is by far not sufficient to effectively promote and facilitate the development of RECs. The RED II contains many indefinite legal concepts that have to be ‘filled with life and elaborated on what they mean at the national level. These affect membership and governance aspects, spatial and system-related boundaries, but also technical parameters, activities and integration into energy markets. Depending on how governments interpret and specify those indefinite legal terms, the national provisions for RECs might turn out as a barrier or enabler for RECs. Besides definitions and acknowledgements of specific market activities, the creation of an effective enabling framework requires fine-tuning of the existing energy governance and physical infrastructure to accommodate RECs, especially in relation to incentives, subsidies, and access to energy markets. So far, none of the countries under scrutiny has developed an enabling framework to promote and facilitate the development of RECs that would fully or largely comply with the minimum requirements listed in RED II. In most countries, enabling frameworks are still underdeveloped or fragmentary. However, the implementation of enabling frameworks is progressing in almost all countries, albeit with different commitment, pace, and support. Among the countries analysed, Italy, the Netherlands, and Spain appear to be the most advanced countries in this respect.