Amended 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
Date: 2000-12-28
Institutions: European Commission
Subjects: approximation of laws, electrical energy, energy production, renewable energy, single market

29.5.2001

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Official Journal of the European Communities

C 154 E/89

Amended 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 (1)

(2001/C 154 E/05)

(Text with EEA relevance)

COM(2000) 884 final (cid:151) 2000/0116(COD)

(Submitted by the Commission pursuant to Article 250(2) of the EC Treaty on 29 December 2000)

(1) OJ C 311 E, 31.10.2000, p. 320.

INITIAL PROPOSAL

AMENDED PROPOSAL

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Unchanged

Having regard to the Treaty establishing the European
Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of
Committee,

the Economic and Social

Having regard to the opinion of the Committee of the Regions,

Acting in accordance with the procedure laid down in Article
251 of the Treaty,

Whereas:

(2) The potential

for exploitation of renewable sources of
energy is underused in the Community at present. t is
therefore necessary to take measures to ensure that the
is better exploited within the framework of the internal
electricity market.

(3) Directive 96/92/EC of the European Parliament and of the
Council of 19 December 1996 concerning common rules
for the internal market in electricity (1) provides for an
important step in the completion of the internal market
in electricity.

___________
(1) OJ L 27, 30.1.1997, p. 20.

(1) A stable legislative framework for the market in renewable
energy sources needs to be established as a matter of
urgency.

(2) The potential

for exploitation of renewable sources of
energy is underused in the Community at present. The
European Union and the Member States agree on the
need to promote renewable energy sources as a priority
they contribute to environmental
measure, given that
protection, create local employment and social well-being,
ensure security of supply, make it possible to meet the
Kyoto targets more quickly, represent a key peace-making
factor and offer further positive synergies. It is therefore
necessary to take measures to ensure that the potential of
all energy produced from renewable energy sources is
better exploited within the framework of the internal elec-
tricity market.

(3) Directive 96/92/EC of the European Parliament and of the
Council of 19 December 1996 concerning common rules
for the internal market in electricity (1) provides for an
important step in the completion of the internal market
in electricity. A supplementary Directive concerning
renewable energy sources and attaching equal weight to
the environmental aspects of
therefore
needed.
___________
(1) OJ L 27, 30.1.1997, p. 20.

the Treaty is

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INITIAL PROPOSAL

AMENDED PROPOSAL

(4) Given that the Member States provide direct and indirect
support for nuclear and fossil fuels without taking account
of external consequential costs, the electricity market is
distorted in favour of those energy sources. Article 3 of
Directive 96/92/EC allows measures
in the general
economic interest which may relate to environmental
protection, and Article 8(3) and 11(3)
thereof allow
priority to be given to electricity from renewable energy
sources.

(5) Article 6 of the Treaty requires environmental protection
requirements to be integrated into the definition and
implementation of the Community policies and actions.

Unchanged

(6) The promotion of electricity from renewable sources of
energy is a high Community priority as outlined in the
White Paper on Renewable Energy Sources ((cid:145)the White
Paper(cid:146)) (1) for reasons of security and diversification of
energy supply, for reasons of environmental protection
and for reasons of social and economic cohesion. That
was endorsed by the Council in its Resolution of 8 June
1998 on renewable sources of energy (2), and by the
in its Resolution on the White
European Parliament
Paper (3).

(7) In particular the Council in its Resolution of 8 June 1998
endorsed the objective of 12 % of
inland
consumption comprising electricity, heat and biofuels
from renewable energy sources for the Community as a
whole by 2010, as suggested in the White Paper and
called for increased efforts at Community level as well
as
in Member States, bearing in mind the need to
reflect different national circumstances.

the gross

(8) In the White paper the indicative objective of 12 % was
translated into a specific share of consumption of elec-
tricity produced from renewable energy sources. Taking
into
electricity
consumption as explained in this Directive, that indicative
objective of 12 % results in a 22,1 % share of electricity
produced from renewable energy sources.

scenario

updated

account

for

an

(9) A harmonised framework on electricity from renewable
energy sources forms part of the Action Plan outlined in
the White Paper.

___________
(1) COM(97) 599 final.
(2) OJ C 198, 24.6.1998, p. 1.
(3) A4-0207/98.

the gross

(7) In particular the Council in its Resolution of 8 June 1998
endorsed the objective of 12 % of
inland
consumption comprising electricity, heat and biofuels
from renewable energy sources for the Community as a
whole by 2010, as suggested in the White Paper and
called for increased efforts at Community level as well
as
in Member States, bearing in mind the need to
reflect different national circumstances. This Directive is
therefore highly appropriate. A further Directive on
biofuels from renewable energy sources should also be
drawn up at some stage in the future.

Unchanged

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INITIAL PROPOSAL

AMENDED PROPOSAL

(10) The increased use of electricity from renewable energy
sources constitutes an essential part of the package of
measures needed to comply with the Kyoto Protocol,
and in any policy package to meet further commitments.
The net environmental effects of different
renewable
energy sources
should be taken into account when
implementing different measures.

(11) The increased use of electricity from renewable energy
sources
is not only necessary to reduce greenhouse
gases but also to reduce other harmful emissions such
as emissions of SO2 and NOx.

(12) The Council in its conclusion of 11 May 1999 (1) and the
European Parliament in its Resolution of 26 May 1998 on
electricity from renewable energy sources (2) have invited
the Commission to submit a concrete proposal
for a
Community framework on access for electricity from
renewable
internal market.
Furthermore, the European Parliament in its Resolution
of 30 March 2000 on Electricity from renewable energy
sources and the internal electricity market (3) underlined
the
that binding and ambitious renewables targets at
national
to results and to achieving
the Community targets.

level are essential

to the

sources

energy

in Article 5 of

(13) In accordance with the principles of subsidiarity and
the Treaty,
proportionality as set out
general principles providing for
framework and
objectives must be established at Community level, but
their detailed implementation should be left to Member
States, thus allowing each Member State to choose the
regime which corresponds best to its particular situation.
This Directive confines itself to the minimum required in
order to achieve those objectives and does not go beyond
what is necessary for that purpose.

a

(14) Electricity generated by large hydroelectric plants, while
currently the most important form of electricity generated
from renewable energy sources, is generally competitive
with electricity produced from conventional sources and
this
should therefore be excluded from the scope of
Directive, except with regard to the provisions on
national targets and certification of origin.

(14) Electricity generated by large hydroelectric plants, while
currently the main and most highly developed form of
electricity generated from renewable energy sources,
is
generally competitive with electricity produced from
conventional sources and should therefore be excluded
from the scope of this Directive, except with regard to
targets and certification of
the provisions on national
origin. However,
there should be scope for granting
investment aid for modernising and enlarging large, tech-
nologically obsolete hydroelectric plants which can be
used to achieve a substantial increase in the production
of electricity from renewable energy sources without
increasing the impact on the environment.

___________
(1) 8013/99.
(2) A4-0199/98.
(3) A5-0078/2000.

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INITIAL PROPOSAL

AMENDED PROPOSAL

(15) To ensure increased market penetration of electricity from
renewable energy sources in the medium term,
is
necessary to require all Member States to set national
from
targets
renewable sources as well as detailed plans
the
achievement of those targets.

consumption

electricity

the

for

for

of

it

Unchanged

(16) It is necessary that the national targets, individually and
collectively, are consistent with the objectives of doubling
the share of
in the gross
renewable energy sources
domestic energy consumption in the Community by
2010 as outlined in the White Paper and the Climate
Change commitments accepted by the Community at
Kyoto,
change
commitments accepted within this context. A framework
based on well-established and transparent methodologies
should be laid down for the setting of such national
targets.

and with

national

climate

any

(17) The Commission should evaluate Member States’ national
targets and policies and in particular their compliance
the Climate Change
with the White
commitments accepted by the Community at Kyoto and
should,
if necessary, present proposals to the European
Parliament and to the Council with respect to individual
and mandatory national targets with a view to achieving
such compliance.

Paper

and

(18) Increased possibilities of

trade and competition would
help increase the share of electricity from renewable
energy sources in the Community by bringing down
costs
the
potential
for development of renewable energy sources
in the Community, depending inter alia on geographical
circumstances.

and facilitating

exploitation of

full

the

(19) To facilitate trade in electricity from renewable energy
sources and to increase transparency for the consumer’s
choice between conventionally produced electricity and
electricity from renewable energy sources, certification
of the guarantee of origin of such electricity is necessary.
It is important that all forms of electricity generated from
renewable energy sources are covered by such guarantees
of origin. Consequently, the provisions on the guarantee
of origin should apply to large hydroelectric plants.

(20) Public support

for electricity from renewable energy
sources is based on the assumption that,
in the long
run, it can compete with conventionally produced elec-
tricity. Such support will be necessary to reach the
Community’s objectives with regard to its expansion, in
particular as long as electricity prices in the internal
market do not reflect the full social and environmental
costs and benefits of energy sources used. The need for
public support in favour of renewable energy sources is
thus recognised in the Community Guidelines for State aid
for environmental protection (1). The rules of the Treaty,
and in particular Articles 87 and 88 thereof, will continue
to apply to such public support however.

(20) Public support

for electricity from renewable energy
sources is based on the assumption that,
in the long
run, it can compete with conventionally produced elec-
tricity. Such support will be necessary to reach the
Community’s objectives with regard to its expansion, in
particular as long as electricity prices in the internal
market do not reflect the full social and environmental
costs and benefits of energy sources used. The need for
public support in favour of renewable energy sources is
thus recognised in the Community Guidelines for State aid
for environmental protection (1). The rules of the Treaty,
and in particular Articles 87 and 88 thereof, will continue
to apply to such public support however. The application
of the State aid rules should take account of the need to
internalise external costs of electricity generation.

___________
(1) OJ C 72, 10.3.1994, p. 3.

___________
(1) OJ C 72, 10.3.1994, p. 3.

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INITIAL PROPOSAL

AMENDED PROPOSAL

(21) Member States operate different mechanisms of support
for
level,
including investment aid, tax exemptions or reductions,
tax refunds and direct price support schemes.

renewable energy sources at

the national

renewable energy sources at

(21) Member States operate different mechanisms of support
for
level,
including investment aid, tax exemptions or reductions,
tax refunds and direct price compensation payments for
avoiding
of
competition.

the national

distortions

external

other

costs

and

(22) It is too early to decide on a Community-wide framework
regarding support
the limited
schemes,
current
experience with national
relatively low share of price supported renewable elec-
tricity in the Community.

in view of

and the

schemes

Unchanged

It

schemes.

If necessary in the light of

(23) It is however necessary, to adapt, in the medium term,
the developing
support schemes to the principles of
is therefore appropriate
internal electricity market.
that the Commission monitor the situation and present
a report on experience gained with the application of
national
the
conclusions of this report, the Commission should make
a proposal for a Community framework with regard to
support schemes for electricity from renewable energy
sources. That proposal should be compatible with the
principles of
take into
account the characteristics of the different technologies,
be efficient and simple, and include sufficient transitional
regimes
to maintain investors’ confidence and avoid
stranded costs.

the internal electricity market,

(23) It is however necessary, in parallel with the removal of
market distortions disfavouring renewables, to adapt,
in
the medium term, support schemes to the principles of
the developing internal electricity market, while having
regard to their particular relevance to the socio-economic
and environmental principles of
the Treaty. Adequate
growth in electricity from renewable energy sources can
for such electricity is
only be promoted if a market
created in the European Union. This will enable electricity
from renewable energy sources to compete with electricity
from conventional energy sources,
limit the cost to the
consumer and in the medium term reduce the need for
public support.
the
Commission monitor the situation and present a report
on experience gained with the application of national
schemes. If necessary in the light of the conclusions of
this report, the Commission should make a proposal for a
Community framework with regard to support schemes
for electricity from renewable energy sources. That
proposal should be compatible with the principles of
the internal electricity market,
the
characteristics of the different technologies, be efficient
and simple, and include sufficient transitional regimes of
up to 10 years to maintain investors’ confidence and avoid
stranded costs.

therefore appropriate that

take into account

is

It

(24) When favouring the development of a market

for
it is necessary to take into account
renewable energy,
the positive impact on employment and social cohesion,

(24) When favouring the development of a market

for
it is necessary to take into account
renewable energy,
the positive impact on employment and social cohesion,
regional and local development opportunities, export
prospects, development
in third countries, sustainable
development of the environment and peace.

(25) Increased market penetration of electricity from renewable
energy sources will allow for economies of scale, thereby
reducing costs.

(25) Increased market penetration of electricity from renewable
energy sources will allow for economies of scale, thereby
reducing costs. It is important to utilise the strength of the
market forces and the internal market and make electricity
from renewable energy sources competitive and attractive
to European citizens.

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INITIAL PROPOSAL

AMENDED PROPOSAL

(26) Small and medium-sized undertakings and independent
power producers play an important role in the production
of electricity from renewable energy sources, and their
access to the market for renewable electricity should be
encouraged,
improving the employment oppor-
tunities for companies in this sector.

thus

Unchanged

(27) While this Directive is designed to encourage, amongst
other things, the use of biomass as a renewable energy
source, it is not the intention to interfere excessively with
its availability for normal use.

the renewables sector, which
(28) The specific structure of
includes many small
and medium-sized enterprises,
should be taken into account, especially when reviewing
the administrative procedures for obtaining permission to
construct plants producing electricity from renewable
energy sources.

Unchanged

(29) The costs of connecting new producers of electricity from
renewable energy sources
should be transparent and
non-discriminatory and due account should be taken of
the benefit embedded generators bring to the grid,

HAVE ADOPTED THIS DIRECTIVE:

CHAPTER I

SCOPE AND DEFINITIONS

Article 1

this Directive is

The purpose of
to create a common
framework in order to promote an increase of the contribution
of renewable energy sources to electricity production in the
internal market for electricity.

Article 2

For the purposes of this Directive, the definitions in Directive
96/92/EC shall apply.

The following definitions shall also apply:

1.

(cid:145)renewable energy sources(cid:146) shall mean renewable non-fossil
sources (wind, solar, geothermal, wave, tidal, hydroelectric
installations with a capacity below 10 MW and biomass,
which means products
from agriculture and forestry,
forestry and from the
vegetable waste from agriculture,
food production industry, untreated wood waste and cork
waste);

1.

(cid:145)renewable energy sources(cid:146) shall mean renewable non-fossil
sources;

(cid:151) wind,

(cid:151) solar ray energy,

(cid:151) geothermal,

(cid:151) wave,

(cid:151) sea currents,

(cid:151) tidal and hydroelectric installations with a capacity

below 10 MW,

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INITIAL PROPOSAL

AMENDED PROPOSAL

(cid:151) biomass with insignificant

impurities, meaning the
biodegradable fraction of materials from agriculture
and forestry, wood and cork waste, biodegradable
by-products of the pulp and paper industry and the
decomposition
of
separated municipal wastes,

biodegradable

fraction

the

of

(cid:145)electricity from renewable energy sources(cid:146) shall mean elec-
tricity generated by plants using only renewable energy
including the part of electricity produced from
sources,
renewable energy sources in hybrid plants using conven-
tional sources of energy, in particular for back-up purposes;

(cid:151) landfill gas;

Unchanged

receives, directly or

(cid:145)support scheme(cid:146) shall mean a mechanism according to
which a generator of electricity, on the basis of state regu-
lation,
support,
including in particular, direct price support, paid as a
subsidy per kWh provided and sold (e.g. quota systems
providing for tendering or green certificates, fixed feed-in
prices and fixed premium schemes), investment aid and tax
exemptions;

indirectly, public

(cid:145)consumption of electricity(cid:146) shall mean domestic electricity
production,
(gross
imports, minus
consumption).

exports

plus

2.

3.

4.

CHAPTER II

NATIONAL TARGETS FOR CONSUMPTION OF ELECTRICITY
FROM RENEWABLE SOURCES OF ENERGY

Article 3

1. Member States shall take the necessary steps to ensure
the consumption of electricity from renewable energy
that
sources develops in conformity with the established objectives
referred to in paragraph 2. For the application of this Article,
hydroelectric installations with a capacity above 10 MW shall
be considered as a renewable energy source.

2.
No later than one year after the entry into force of this
Directive and every five years thereafter, Member States shall
adopt and publish a report setting national targets for future
consumption of electricity from renewable energy sources.
identify the national objective for future
Such targets shall
levels of consumption of electricity from renewable energy
sources,
in terms of kWh consumed or as a percentage of
electricity consumption, on a year-by-year basis for the next
10 years. They shall be compatible with the objective of 12 %
of the gross domestic energy consumption by 2010 set in the
White Paper on Renewable Energy Sources and in particular
with the 22,1 % share of electricity from renewable energy
sources in the total Community electricity consumption by
2010 as referred to in the Annex to this Directive. They shall
further be compatible with any national commitments accepted
in the context of the Climate Change commitments accepted by
the Community in Kyoto and subsequently. The report shall
also outline the measures taken and to be taken, at national
level, to achieve these objectives.

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INITIAL PROPOSAL

AMENDED PROPOSAL

Each year, the Member States shall publish a report which
includes an analysis of success in meeting the previous year’s
national targets and shall indicate to which extent the measures
taken are
change
commitment.

consistent with the national

climate

Each year, the Commission shall, on the basis of the
3.
Member States’ reports referred to in paragraph 2, assess the
extent
and
collectively, are consistent with the established objectives
referred to in paragraph 2 and publish its conclusions in a
report.

to which the national

individually

targets,

the report

The Commission shall,

4.
referred to in
if
paragraph 3 concludes that the national targets are liable to
be inconsistent with the established objectives referred to in
paragraph 2, present proposals to the European Parliament and
to the Council with respect
to individual and mandatory
national targets.

CHAPTER III

ACCESS OF ELECTRICITY FROM RENEWABLE ENERGY
SOURCES TO THE INTERNAL MARKET OF ELECTRICITY

Article 4

Support schemes
The Commission shall monitor the application of support
schemes in Member States and shall, no later than five years
after the entry into force of this Directive, present a report on:

(cid:151) experience gained with the application and the co-existence

of different support schemes in Member States,

(cid:151) the success of individual support schemes in achieving the

targets set in this Directive,

(cid:151) the competitiveness of renewable energy sources on the
energy market and progress in internalising external costs,
as well as the status of subsidies to other energy sources,

(cid:151) the perspective for a proposal for a harmonised support
system which is intended to lead to a high degree of utili-
sation of electricity from renewable energy sources, lower
prices for the public, a level playing field for market
operators and which is capable of forming part of an inte-
grated electricity market.

In the light of the conclusions of that report, the Commission
will, if necessary, make a proposal for a Community framework
with regard to support schemes for electricity from renewable
energy sources. That proposal shall:

Unchanged

(a) be compatible with the principles of the internal electricity

market

(a) be compatible with the principles of the internal electricity
market and the objective of environmental protection
pursuant to Article 6 of the EC Treaty;

(b) take into account

the characteristics of

the different

renewable energy technologies and;

(b) take into account

the different
renewable energy technologies and geographical circum-
stances;

the characteristics of

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INITIAL PROPOSAL

AMENDED PROPOSAL

(c) be efficient and simple

(c) promote the use of renewable energy sources in an effective
way, and be simple and at the same time as efficient as
possible, particularly in terms of cost;

(d) include sufficient transitional regimes to maintain investors’

Unchanged

confidence.

The rules of the Treaty, and in particular Articles 87 and 88
thereof, apply to the support schemes.

Article 5

Guarantee of origin of electricity from renewable energy
sources

1. Member States shall, within two years following the entry
into force of this Directive, ensure that the origin of electricity
generated from renewable energy sources can be guaranteed as
this Directive according to
such within the meaning of
objective and non-discriminatory criteria laid down by each
of the Member States. They shall
issue guarantee certificates
to this effect. For the application of this Article, hydroelectric
installations with a capacity above 10 MW shall be considered
as a renewable energy source. The certificates shall specify the
energy source from which the electricity is generated and in
the case of hydroelectric installations, whether the capacity is
above or under 10 MW.

2.
Guarantee certification shall serve to enable producers of
electricity from renewable energy sources to demonstrate that
the electricity they sell
is electricity from renewable energy
sources within the meaning of this Directive. Such certificates
shall be mutually recognised by the Member States for this
in particular
purpose. Any refusal
for
fraud, must be
and non-discriminatory
transparent
based on objective,
criteria. Any disputes shall be settled by the Commission.

reasons relating to the prevention of

to recognise certificates,

3. Member States shall designate a competent body, inde-
pendent from generation and distribution activities, to issue
such guarantee certificates within one year
following the
entry into force of this Directive.

4. Member States shall put into place appropriate mech-
anisms
to ensure that certification is both accurate and
reliable and they shall outline in the report referred to in the
second subparagraph of Article 3(2) the measures taken to
ensure the reliability of the certification system.

5.
After having consulted national experts, the Commission
shall in the report referred to in Article 8 consider the form
and modalities that Member States should follow in the certifi-
cation of electricity generated from renewable energy sources.
If necessary, the Commission shall propose to the European
Parliament and the Council the adoption of common rules in
this respect.

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AMENDED PROPOSAL

INITIAL PROPOSAL

CHAPTER IV

ADMINISTRATIVE PROCEDURES

Article 6

1. Member States shall review the existing legislative and
regulatory framework with regard to authorisation procedures
applicable to installations of generation plants for electricity
from renewable energy sources, with a view to streamlining
and expediting procedures at the appropriate administrative
level, and ensuring that the rules are objective, transparent
and non-discriminatory, and take fully into account the particu-
larities of the various renewable technologies.

2. Member States shall publish not later than two years after
the entry into force of this Directive a report on the review
referred to in paragraph 1 setting out the action which must be
taken to reduce regulatory and non-regulatory barriers to
increasing production of electricity from renewable energy
in particular, the following
sources. The report shall cover,
issues:

(a) coordination between the different administrative bodies
authorisation of
concerned with the procedure
generation plants producing electricity from renewable
energy sources;

for

(b) reasonable deadlines for dealing with applications for auth-

orisation;

(c) the establishment of a fast-track planning procedure for
producers of electricity from renewable energy sources;

(d) where applicable, the possibility of establishing mechanisms
under which the absence of reply by the competent bodies
on an application for authorisation within a certain period
of time automatically results in an authorisation;

(e) establishment of single reception points, at the appropriate
administrative level, for applications of authorisations for
the installation of generation plants for electricity from
renewable energy sources;

(f)

the identification at the national, regional or local level of
sites suitable for establishing new capacity for generating
electricity from renewable energy sources;

(g) specific planning guidelines for projects for electricity from

renewable energy sources;

(h) the designation of an authority (a public or a private body)
in disputes between authorities
and
granting of

as mediator
to act
responsible
the
for
applicants for authorisations;

authorisations

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AMENDED PROPOSAL

(i)

the introduction of comprehensive information and training
programmes on technologies concerning the utilisation of
renewable energy sources for personnel responsible for the
authorisation procedures.

3.
The Commission shall, in the report mentioned in Article
8 and on the basis of the Member States’ reports referred to in
paragraph 2 of this Article, assess best practice with respect to
removing regulatory and non-regulatory barriers with a view to
promoting the penetration of electricity from renewable energy
sources.

CHAPTER V

GRID SYSTEM ISSUES

Article 7

take the necessary measures to
1. Member States shall
ensure that
transmission system operators and distribution
system operators in their territory grant priority access to
the
from
transmission
renewable energy sources.

distribution

electricity

and

of

shall

States

require

transmission

system
2. Member
operators and distribution system operators to set up and
publish standard rules relating to the bearing of costs of
technical adaptations, such as grid connections and grid rein-
forcements which are necessary in order to integrate a new
producer feeding electricity from renewable energy sources
into the interconnected grid.

shall be based on objective,

These rules
transparent and
non-discriminatory criteria taking particular account of all
the future system costs and benefits generated by renewable
energy installations.

Transmission and distribution system operators shall be
3.
required to provide to a new generator wishing to be
connected a comprehensive and detailed estimate of the costs
associated with the connection.

shall

States

require

4. Member
system
operators and distribution system operators to set up and
publish standard rules relating to the sharing of costs of
system installations,
such as grid connections and rein-
forcements, between all generators benefiting from them.

transmission

The sharing shall be enforced by an appropriate compensation
mechanism and shall be based on objective, transparent and
the benefits
non-discriminatory criteria taking into account
initially and subsequently connected generators as well as trans-
mission system operators and distribution system operators
derive from the connections.

5. Member States shall in the report referred to in Article
6(2) also consider the measures to be taken to facilitate access
to the grid system of electricity from renewable energy sources.
In particular,
shall examine the necessity to
introduce two-way metering.

report

that

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INITIAL PROPOSAL

CHAPTER VI

FINAL PROVISIONS

Article 8

The Commission shall, if necessary, two years after the entry
into force of this Directive and in any event no later than 31
December 2004, taking into account, inter alia, progress made
in the Community by 1 January 2004 pursuant to Directive
96/92/EC, as well as progress made in meeting climate change
commitments, and the reports produced by Member States
pursuant
to the
to Article 3(2) and Article 6(2), present
European Parliament and the Council an interim report on
the implementation of this Directive.

A final report shall be produced by the Commission no later
than 1 January 2009

AMENDED PROPOSAL

A final report shall be produced by the Commission no later
than 1 January 2009. In the first report the Commission shall
present a forward looking review and indications of targets for
the period from 2010 to 2020.

Those reports shall consider the progress made in reflecting the
external costs of electricity not generated from renewable
energy sources and the impact of State aid granted to electricity
not generated from renewable energy sources.

Both reports shall consider the progress made in reflecting the
external costs of electricity not generated from renewable
energy sources and the impact of State aid granted to electricity
not generated from renewable energy sources.

The final report shall, in particular, take into account the possi-
bility for Member States to meet the objectives established in
the framework of Article 3 and the existence of discrimination
between different energy sources.

Unchanged

If appropriate, the Commission shall submit with the reports
further proposals to the European Parliament and the Council.

Article 9

Member States shall bring into force the laws, regulations and
administrative provisions necessary to comply with this
Directive by 31 May 2001 at the latest. They shall forthwith
inform the Commission thereof.

When Member States adopt those provisions, they shall contain
a reference to this Directive or be accompanied by such a
their official publication.
reference on the occasion of
Member States shall determine how such reference is to be
made.

Article 10

This Directive shall enter into force on the twentieth day
following that of its publication in the Official Journal of the
European Communities.

Article 11

This Directive is addressed to the Member States.

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ANNEX

INDICATIVE FIGURES FOR MEMBER STATE TARGETS

This Annex provides an indication for setting national targets for electricity from renewable energy sources (RES-E), as
referred to in Article 3(2).

1. Analytical basis

The following elements have been used for the analysis and calculation of the figures contained in the table in
section 3:

(cid:151) Update of the Best Practice Scenario of the TERES II study (1) taking into account recent developments in

renewable energy sources (RES).

(cid:151) Official Eurostat 1997 data for RES consumption per Member State.

(cid:151) Gross electricity consumption per Member State, from the baseline scenario provided in (cid:145)Energy in Europe (cid:151)

European Union Energy Outlook to 2020(cid:146), published in November 1999 (2).

(cid:151) Action plans, strategies, White Papers, etc. published by Member States, as well as various sectoral studies and
recent reports analysing potentials and trends in renewable energy have been used as an important input for the
analysis.

2. Methodology

The calculation of indicative Member State targets for RES-E is based upon the principle that the targets should
collectively be compatible with the White Paper objective of doubling the contribution of RES to 12 % of gross
inland energy consumption by 2010 and that this should be reached by a joint effort based on technological and
economic potentials in each Member State.

In the White Paper this 12 % share of total renewable energy sources in the gross inland energy consumption has
been translated into a specific share for consumption of electricity produced from renewable energy sources. In other
words, the White Paper contains projections for the development of RES-E needed to achieve the overall 12 %
objective. The results of these projections require a doubling of RES-E from 337 TWh (14,3 %) in 1995 to 675 TWh
(23,5 %) in 2010. These projections have been used as the starting point of the analysis.

By examining existing Member State targets, it appears that they are not sufficiently ambitious to reach collectively
the overall 12 % objective, or the specific RES-E share projected in the White Paper.

In order to establish a set of indicative Member State targets which are compatible with the objective of the White
Paper, an updated version of the energy model used for the preparation of the White Paper has been employed as the
principal analytical basis, taking into account the latest available figures (Eurostat figures from 1997 together with
figures for gross electricity consumption from the baseline scenario (3) have been used in the modelling process;
furthermore, recent technological developments, such as progress in wind energy technologies, market penetration
curves etc. have been included in the calculation).

The energy model used is Safire (Strategic Assessment Framework for the Implementation of Rational Energy), which
was used already in the TERES II study and was originally developed under the Joule II programme (4).

Safire is a highly sophisticated database and computer model that contains, among others, country-specific databases
with information on energy demand by sector, energy prices, technology costs and renewable energy resources
available. For this exercise, Safire has been run on a country by country basis for the 15 EU countries, using the best
practice scenario of the TERES II study which is the scenario that lies behind the 12 % objective of the White paper.

(1) TERES II (cid:151) The European Renewable Energy Study, European Commission, 1997. Through different scenarios, TERES II analyses the
degree of political action necessary to meet Community objectives for the development of RES. TERES II was prepared for the
European Commission within the framework of the Altener programme and was used as the main analytical basis for the drafting of
the White Paper.

(2) Energy in Europe (cid:151) European Union Energy Outlook to 2020, special issue November 1999, European Commission (cid:151) the Shared

Analysis Project.
(3) See footnote 14.
(4) Safire, European Commission, Directorate General XII, Science, Research and Development, 1995.

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The latest existing Member States targets and policies have been used as references to validate the results of the
calculations of the TERES II update and to check for possible compliance between model projections and current
targets in Member States.

3. Indicative figures for Member State targets

Percentages and amounts of TWh per Member State set out in the table below are the result of the analysis described
above. The indicative Member State targets are collectively compatible with the White Paper objective, leading in the
updated analysis to a total RES-E share of total EU electricity consumption of 22 % by 2010 (1). The indicative targets
per Member State are expressed as a percentage of gross electricity consumption by 2010 (2). The figures in TWh are
put as a reference.

Figures relating to each country’s gross electricity consumption are taken from the baseline scenario of (cid:145)Energy in
Europe(cid:146). This baseline scenario predicts an increase in final energy demand of 1,2 % annually between 1995-2010. If
Member States achieve a lower gross electricity consumption than in the baseline scenario, the same percentage
target would lead to a smaller consumption of RES-E in TWh.

Indicative figures for Member State targets for contribution of RES-E to gross electricity consumption by 2010

Austria

Belgium

Denmark

Finland

France

Germany

Greece

Ireland

Italy

Luxembourg

Netherlands

Portugal

Spain

Sweden

United Kingdom

European Union

Percentage (*)

78,1

6,0

29,0

35,0

21,0

12,5

20,1

13,2

25,0

5,7

12,0

45,6

29,4

60,0

10,0

TWh

55,3

6,3

12,9

33,7

112,9

76,4

14,5

4,5

89,6

0,5

15,9

28,3

76,6

97,5

50,0

22,1 %

674,9

(*) RES-E consumption as % of total gross electricity consumption of 3 058 TWh as forecasted in the baseline scenario.

(1) The projections of the White Paper were based on an older scenario for electricity consumption. For the purpose of this calculation,
the new 1999 electricity consumption scenario has been used, transforming the 23,5 % RES-E share of electricity consumption of the
White Paper to a 22,1 % share. Therefore, a consumption of 675 TWh as projected in the White Paper in order to contribute to the
12 % objective for all RES will result in a 22,1 % share of electricity.

(2) For the purpose of this Directive, Article 2 has defined (cid:145)consumption of electricity(cid:146) as domestic electricity production, plus imports,

minus exports (gross consumption).

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4. Member States 1997 official Eurostat RES-E compared with indicative targets in 2010

Austria

Belgium

Denmark

Finland

France

Germany

Greece

Ireland

Italy

Luxembourg

Netherlands

Portugal

Spain

Sweden

United Kingdom

RES-E
%
1997

72,7

1,1

8,7

24,7

15,0

4,5

8,6

3,6

16,0

2,1

3,5

38,5

19,9

49,1

1,7

RES-E
%
2010

RES-E
%
1997
without large hydro

RES-E
%
2010
without large hydro

78,1

6,0

29,0

35,0

21,0

12,5

20,1

13,2

25,0

5,7

12,0

45,6

29,4

60,0

10,0

10,7

0,9

8,7

10,4

2,2

2,4

0,4

1,1

4,5

2,1

3,5

4,8

3,6

5,1

0,9

3,2

21,1

5,8

29,0

21,7

8,9

10,3

14,5

11,7

14,9

5,7

12,0

21,5

17,5

15,7

9,3

12,5 %

European Union

13,9 %

22,1 %

The possibilities of using large hydro are to a large extent dependent upon geographical conditions. In order to adjust
for this, the above comparisons are presented both including and excluding large hydro. The differences in the
country figures with regard to the current penetration of RES-E without large hydro indicate to some extent whether
promotional RES policies have been successfully implemented.

It should be noted that developments after 1997, for which no official Eurostat RES-E figures are yet available,
indicate positive developments and strong promotional policies in several countries.