Opinion of the Committee of the Regions on the "Proposal for a Directive of the European Parliament and of the Council on the promotion of electricity from renewable energy sources in the internal electricity market"

(2001/C 22/08)

THE COMMITTEE OF THE REGIONS,

having regard to the Proposal for a Directive of the European Parliament and of the Council on the promotion of electricity from renewable energy sources in the internal electricity market (COM(2000) 279 final - 2000/0116 (COD);

having regard to the decision taken by the Council on 26 June 2000, under the first paragraph of Article 265 of the Treaty establishing the European Community, to consult the Committee on the matter;

having regard to the decision taken by the Committee of the Regions Bureau on 13 June 2000 to instruct Commission 4 for Spatial Planning, Urban Issues, Energy and Environment to draw up the relevant opinion;

having regard to the Council conclusions of 11 June 1999 (8013/99);

having regard to the European Parliament resolution of 26 May 1998 on electricity from renewable energy sources (A4-0199/98);

having regard to the European Parliament resolution of 30 March 2000 on electricity from renewable energy sources and the internal electricity market (A5-0078/2000);

having regard to the Commission communication entitled Energy for the Future: renewable sources of energy - White Paper for a Community strategy and action plan (COM(97) 599 final) and the Committee of the Regions opinion on this communication (COR 57/98 fin)(1);

having regard to the draft opinion adopted by Commission 4 on 7 July 2000 (COR 191/2000 rev. 1 - rapporteur: Mr Maier, D/PSE),

adopted the following opinion at its 35th plenary session of 20 and 21 September 2000 (meeting of 21 September).

The Committee of the Region's position and recommendations on the communication:

The Committee of the Regions

1. questions the assertion in point 2.2 of the Proposal for a Directive that increasingly Europeans would be prepared to pay more for electricity from renewable energy sources. This needs to be verified at European level on the basis of an impartial assessment;

2. welcomes the Commission's determination, in submitting this Proposal for a Directive of the European Parliament and of the Council on the promotion of electricity from renewable energy sources in the internal electricity market, to create a framework which helps to significantly increase the share of electricity from renewable sources (RES-E) within the EU and which is also a key step towards cutting greenhouse gas emissions to protect the climate, as agreed in Kyoto;

3. stresses the need for joint efforts to meet the target of doubling renewable energy's share of EU gross inland energy consumption from the present 6 % to 12 % by 2010, as set out in the White Paper on renewable energy sources and endorsed by the Council;

4. underscores that, as part of the Community's strategy, RES-E makes a key contribution to the requirement of climate protection and to meeting the Community's reduction obligations, and that it is therefore necessary to take appropriate steps to ensure that the potential is better exploited within the framework of the internal electricity market;

5. shares the Commission's view that the obligation for Member States to set targets for domestic RES-E consumption which are consistent with the objectives of the White Paper on renewable energy sources and the commitments accepted by the Community in Kyoto is likely to give an important impetus to the development of the RES-E sector;

6. underscores the need - in accordance with the subsidiarity principle - to leave it to Member States to select the measures which, according to circumstances, make for the best possible use of available potential in each individual case;

7. shares the Commission's view that Member States' various renewable energy promotion schemes to date will continue to be necessary in the medium term as long as electricity prices do not fully reflect the social and environmental costs and benefits of the energy sources used;

8. stresses that the planned directive should not only require that Member States set targets, but should also be an effective supplement and back-up for national schemes;

9. notes that Member States' efforts to boost renewable energy use are hampered if uncertainty remains about which measures are consistent with Community law and the decision-making processes lack sufficient transparency;

10. stresses the need to take account of the special importance of environmental and climate protection for citizens' health and quality of life when weighing up whether Member States' schemes are consistent with EU single market requirements;

11. considers that it is vital to clarify the Commission's future handling of the interplay between the directive, the environmental aid framework and notification arrangements, and that the directive should set out transparent and practical criteria for assessing which renewable energy promotion schemes can be implemented in accordance with Community law;

12. considers it essential that the Community guidelines on state aid for environmental protection should contain appropriate assessment criteria which reflect the need for public support for the use of renewable energy sources;

13. thinks that, under the EC Treaty, the term support is restricted to mean aid originating directly or indirectly from state resources, thus establishing the basis whereby price-fixing rules involving legally warranted purchase and payment obligations are not subject to the ban on aid;

14. points out that, amongst other things, tax relief as decided by each Member State may be granted for RES-E to increase the proportion generated in this way. Tax relief on the transmission and distribution of electricity should also be used to favour the market penetration of RES-E;

15. notes that an obligation - imposed on environmental grounds - to purchase a proportion of electricity from renewable sources does not constitute either direct or indirect price support;

16. backs the Commission's plan to require that Member States introduce a certification of origin scheme in order to permit effective trade in RES-E and also secure complete transparency in consumer choice;

17. asks the Commission to lay down specific provisions in the proposed directive to ensure a uniform approach in the Member States to certification of origin and the definition of renewable energy sources;

18. takes the view that water power, as an important stimulus for renewable energy sources in a Community strategy, should clearly be classified as a renewable energy source regardless of the output of the plant;

19. would point out that, for reasons of transparency and consumer information, the obligation to provide certification of origin should be extended to all types of electricity; providing that the subsidiarity principle is respected and that the introduction of this positive measure is more consumer friendly;

20. recognises that conditions are not yet in place for a decision on Community rules for support instruments;

21. feels that it is appropriate and advisable for the Commission - building on experience gained - to examine and consider in detail all the available options (such pricing or quotas) in its current and future deliberations on a harmonised support system as a basis for trade in renewable energy;

22. stresses the need to ensure that, in the absence of harmonisation, national support schemes are not put under undue strain by trade between the Member States;

23. considers it vital that national schemes should not be opened up to trade between Member States until machinery is introduced to prevent the unfair exploitation of price advantages as a result of differing national support schemes;

24. points out the need to incorporate appropriate transitional arrangements when introducing new rules across the Community in order to respect and protect investor confidence and avoid "stranded costs";

25. reaffirms the point that Member States must ensure that technical rules and operational requirements concerning connection to both the transmission and distribution grids are developed in an objective and non-discriminatory manner and are published;

26. asks the Commission to explore every option in order to keep administrative, legal and regulatory input to an absolute minimum in the application of the directive and the requisite follow-up assessment;

27. points out that it will be impossible to meet the expansion target for renewables if environmentally sound energies are placed at a competitive disadvantage by the failure to take account of the external costs of traditional energy production;

28. stresses the need to press ahead with the adoption of the proposal for a Council Directive on restructuring the Community framework for the taxation of energy products, submitted by the Commission in 1997(2), in order to facilitate compliance with national environment and energy targets;

29. urges the Commission to shape a true global vision of the future of energy, in pursuit of meeting their energy requirements and the sustainable development of the planet, in a clean environment;

30. stresses the need, after the directive is adopted, to closely monitor developments and progress on the emission reduction front and, if the results are lacking, to take the necessary action;

31. points out that an immediate entry into force of the directive would create a dynamic for increasing levels of RES-E in the EU that would not only benefit citizens and the economy but would also provide a major boost to Member States' RES-E plant and equipment sector, with a correspondingly favourable impact on jobs.

Brussels, 21 September 2000.

The President

of the Committee of the Regions

Jos Chabert

(1) OJ C 315, 13.10.1998, p. 5.

(2) COM(97) 30 final of 12.3.1997.