Common Position (EC) No 18/2001 of 23 March 2001 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a Directive of the European Parliament and of the Council on the promotion of electricity produced from renewable energy sources in the internal electricity market
Date: 2001-03-23
Institutions: Council of the European Union
Subjects: electrical energy, energy production, environmental protection, renewable energy, security of supply, single market

15.5.2001

EN

Official Journal of the European Communities

C 142/5

COMMON POSITION (EC) No 18/2001

adopted by the Council on 23 March 2001

with a view to adopting Directive 2001/(cid:133)/EC of the European Parliament and of the Council of
(cid:133) on the promotion of electricity produced from renewable energy sources in the internal
electricity market

(2001/C 142/02)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

(3)

Having regard to the Treaty establishing the European
Community, and in particular Article 175(1) thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of
Committee (2),

the Economic and Social

(4)

Having regard to the opinion of
Regions (3),

the Committee of

the

Acting in accordance with the procedure laid down in Article
251 of the Treaty (4),

Whereas:

(1)

(2)

The potential for the exploitation of renewable energy
sources is underused in the Community at present. The
Community recognises the need to promote renewable
energy sources as a priority measure given that their
exploitation contributes
to environmental protection
and sustainable development. In addition this can also
create local employment, have a positive impact on
social cohesion, contribute to security of supply and
make it possible to meet Kyoto targets more quickly. It
is therefore necessary to ensure that this potential
is
better exploited within the framework of the internal
electricity market.

The promotion of electricity produced from renewable
energy sources is a high Community priority as outlined
in the White Paper on renewable energy sources
(hereinafter referred to as (cid:145)the White Paper(cid:146)) for reasons
of security and diversification of energy supply, of
environmental protection and of social and economic
cohesion. That was endorsed by the Council
in its
Resolution of 8 June 1998 on renewable sources of
energy (5), and by the European Parliament
in its
Resolution on the White Paper.

(1) OJ C 311 E, 31.10.2000, p. 320.
(2) OJ C 367, 20.12.2000, p. 5.
(3) OJ C 22, 24.1.2001, p. 27.
(4) Opinion of the European Parliament of 16 November 2000 (not
yet published in the Official Journal), Council Common Position of
23 March 2001 and Decision of the European Parliament of (cid:133)
(not yet published in the Official Journal).

(5) OJ C 198, 24.6.1998, p. 1.

increased use of

electricity produced

The
from
renewable energy sources constitutes an important part
of the package of measures needed to comply with the
to the United Nations Framework
Kyoto Protocol
Convention on Climate Change, and of any policy
package to meet further commitments.

The Council in its conclusions of 11 May 1999 and the
European Parliament in its resolution of 17 June 1998
on electricity from renewable energy sources (6) have
invited the Commission to submit a concrete proposal
for a Community framework on access for electricity
produced from renewable energy sources to the internal
market. Furthermore,
in its
Resolution of 30 March 2000 on electricity from
renewable energy sources and the internal electricity
market (7) underlined that binding and ambitious
level are
renewable energy targets at
essential
the
Community targets.

the European Parliament

and achieving

for obtaining

the national

results

To ensure increased market penetration of electricity
produced from renewable energy sources in the medium
term, all Member States should be required to set
national
the consumption of
electricity produced from renewable sources.

indicative targets

for

These national
with any national commitment made as part of
commitments
climate
Community under the Kyoto Protocol.

indicative targets should be consistent
the
the

accepted

change

by

indicative targets, and to what extent

The Commission should assess to what extent Member
towards achieving their
States have made progress
national
the
national indicative targets are consistent with the global
indicative target of 12 % of gross domestic energy
consumption by 2010, considering that
the White
Paper’s indicative target of 12 % for the Community as a
whole by 2010 provides useful guidance for increased
efforts at Community level as well as in Member States,
bearing in mind the need to reflect differing national
circumstances.

(5)

(6)

(7)

(6) OJ C 210, 6.7.1998, p. 143.
(7) OJ C 378, 29.12.2000, p. 89.

C 142/6

EN

Official Journal of the European Communities

15.5.2001

(8) Where they use waste as an energy source, Member
States must comply with current Community legislation
on waste management. The application of this Directive
is without prejudice to the definitions
in
Annexes 2a and 2b to Council Directive 75/442/EEC of
15 July 1975 on waste (1).

set out

(9)

(10)

The definition of biomass used in this Directive does
not prejudge the use of a different definition in national
legislation, for purposes other than those set out in this
Directive.

require Member States

This Directive does not
to
recognise the purchase of a guarantee of origin from
other Member States or the corresponding purchase of
electricity as a contribution to the fulfilment of a
national quota obligation. However to facilitate trade in
electricity produced from renewable energy sources and
to increase transparency for
the consumer’s choice
between electricity produced from non-renewable and
electricity produced from renewable energy sources, the
guarantee of origin of such electricity is necessary.
the guarantee of origin do not by
Schemes
themselves
from national
to benefit
support mechanisms established in different Member
forms of electricity
States.
produced from renewable energy sources are covered by
such guarantees of origin.

imply a right

important

that all

for

is

It

(11)

It is important to distinguish guarantees of origin clearly
from exchangeable green certificates.

(12)

is

sources

in favour of renewable
The need for public support
energy
recognised in the Community
guidelines for State aid for environmental protection (2),
which, amongst other options, take account of the need
to internalise external costs of electricity generation.
However,
the Treaty, and in particular
Articles 87 and 88 thereof, will continue to apply to
such public support.

the rules of

(13) A legislative framework for the market in renewable

energy sources needs to be established.

green

certificates,

renewable energy sources at

(14) Member States operate different mechanisms of support
level,
for
including
tax
exemptions or reductions, tax refunds and direct price
support schemes. One important means to achieve the
aim of
to guarantee the proper
functioning of these mechanisms, until a Community
framework is put into operation, in order to maintain
investor confidence.

the national
aid,

this Directive is

investment

(1) OJ L 194, 25.7.1975, p. 39. Directive as

last amended by

Commission Decision 96/350/EC (OJ L 135, 6.6.1996, p. 32).

(2) OJ C 37, 3.2.2001, p. 3.

(15)

(16)

is

too early to decide on a Community-wide
It
in view of the
framework regarding support schemes,
limited experience with national
schemes and the
current relatively low share of price-supported electricity
produced from renewable
in the
Community.

sources

energy

It

produced

electricity

schemes
energy

for
sources. That proposal

It
is however necessary to adapt, after a sufficient
transitional period, support schemes to the developing
internal electricity market.
is therefore appropriate
that the Commission monitor the situation and present
a report on experience gained with the application of
national schemes. If necessary, the Commission should,
in the light of the conclusions of this report, make a
proposal for a Community framework with regard to
from
support
renewable
should
contribute to the achievement of the national indicative
targets, be compatible with the principles of the internal
the
electricity market
characteristics of
renewable
energy,
technologies and
geographical differences. It should also 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, and include sufficient
transitional periods of at least seven years to maintain
investors’ confidence and avoid stranded costs. This
framework would enable electricity from renewable
energy sources to compete with electricity produced
from non-renewable energy sources and limit the cost
to the consumer, while, in the medium term, reduce the
need for public support.

take
the different sources of

together with the different

account

into

and

(17)

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

(18)

It is important
to utilise the strength of the market
forces and the internal market and make electricity
produced from renewable energy sources competitive
and attractive to European citizens.

(19) When favouring the development of a market

for
it is necessary to take into
renewable energy sources,
the positive impact on regional and local
account
development opportunities,
social
cohesion and employment opportunities, especially as
concerns small and medium-sized undertakings as well
as independent power producers.

export prospects,

(20)

The specific structure of the renewable energy sources
sector should be taken into account, especially when
reviewing the administrative procedures for obtaining
permission to construct plants producing electricity
from renewable energy sources.

15.5.2001

EN

Official Journal of the European Communities

C 142/7

(21)

(22)

(23)

In certain circumstances it is not possible to fully ensure
transmission and distribution of electricity produced
from renewable energy sources without affecting the
reliability and safety of the grid system and guarantees
in this
financial
compensation.

context may

therefore

include

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

the proposed action
Since the general objectives of
cannot be sufficiently achieved by the Member States
and can therefore, by reason of the scale or effects of
the action, be better achieved at Community level, the
Community may adopt measures,
in accordance with
the principle of subsidiarity as set out in Article 5 of the
Treaty. Their detailed implementation should, however,
be left
thus allowing each
Member State to choose the regime which corresponds
best to its particular situation. In accordance with the
principle of proportionality, as set out in that Article,
this Directive does not go beyond what is necessary in
order to achieve those objectives,

to the Member States,

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Purpose

The purpose of this Directive is to promote an increase in the
contribution of
to electricity
production in the internal market for electricity and to create a
basis for a future Community framework thereof.

renewable

sources

energy

Article 2

Definitions

For the purposes of this Directive, the following definitions
shall apply:

(cid:145)renewable energy sources(cid:146) shall mean renewable non-fossil
energy sources
tidal,
hydropower, biomass, landfill gas, sewage treatment plant
gas and biogases);

solar, geothermal, wave,

(wind,

(a)

(b)

(c)

(cid:145)electricity produced from renewable energy sources(cid:146) shall
mean electricity produced by plants using only renewable
energy sources, as well as the proportion of electricity
produced from renewable energy sources in hybrid plants
also using conventional energy sources and including
renewable electricity used for filling storage systems, and
excluding electricity produced as a result of
storage
systems;

(d)

(cid:145)consumption of electricity(cid:146) shall mean national electricity
production, including autoproduction, plus imports, minus
exports (gross national electricity consumption).

the definitions

In addition,
the
European Parliament and of the Council of 19 December 1996
concerning common rules for the internal market of electricity
shall apply (1).

in Directive 96/92/EC of

Article 3

National indicative targets

1. Member States shall take appropriate steps to encourage
greater consumption of electricity produced from renewable
energy sources in conformity with the national
indicative
targets referred to in paragraph 2. These steps must be in
proportion to the objective to be attained.

later than (cid:133) (*) and every five years thereafter,
2.
Not
Member States
setting
shall adopt and publish a report
national indicative targets for future consumption of electricity
in terms of a
produced from renewable energy sources
percentage of electricity consumption for the next 10 years.
The report shall also outline the measures taken or planned, at
national level, to achieve these national indicative targets. To
set these targets until the year 2010, the Member States shall:

(cid:151) take account of the reference values in the Annex, and

(cid:151) ensure that the targets are compatible with any national
the climate
the Community
to the United Nations

commitments accepted in the context of
commitments
accepted
change
pursuant
to the Kyoto Protocol
Framework Convention on Climate Change.

by

3. Member States shall publish, for the first time not later
than (cid:133) (**) and thereafter every two years, a report which
in meeting the national
includes an analysis of
success
indicative targets taking account,
in particular, of climatic
factors likely to affect the achievement of those targets and
which indicates
taken are
consistent with the national climate change commitment.

to what extent

the measures

shall mean the biodegradable

(cid:145)biomass(cid:146)
fraction of
products, waste and residues from agriculture (including
forestry and related
substances),
and animal
vegetal
industries,
fraction of
as
as well
industrial and municipal waste;

the biodegradable

(1) OJ L 27, 30.1.1997, p. 20.
(*) One year after the entry into force of this Directive.
(**) Two years after the entry into force of this Directive.

C 142/8

EN

Official Journal of the European Communities

15.5.2001

On the basis of the Member States’ reports referred to in
the Commission shall assess to what

4.
paragraphs 2 and 3,
extent:

(e)

include sufficient transitional periods of at least seven years
to maintain investor confidence.

(cid:151) Member States have made progress towards achieving their

national indicative targets,

(cid:151) the national

indicative targets are consistent with the
global
indicative target of 12 % of gross national energy
consumption by 2010 and in particular with the 22,1 %
indicative share of electricity produced from renewable
energy sources in total Community electricity consumption
by 2010.

The Commission shall publish its conclusions in a report, for
the first time not later than (cid:133) (*) and thereafter every two
years. This report shall be accompanied, as appropriate, by
proposals to the European Parliament and to the Council.

Article 5

Guarantee of origin of electricity produced from
renewable energy sources

1. Member States shall, not later than (cid:133) (***), ensure that
the origin of electricity produced from renewable energy
sources can be guaranteed as such within the meaning of this
Directive
and
non-discriminatory criteria laid down by each Member State.
They shall ensure that a guarantee of origin is issued to this
effect in response to a request.

transparent

according

objective,

to

Article 4

Support schemes

2. Member States may designate one or more competent
bodies, independent of generation and distribution activities, to
supervise the issue of such guarantees of origin.

1. Without prejudice to Articles 87 and 88 of the Treaty,
the Commission shall evaluate the application of mechanisms
used in Member States according to which a producer of
electricity, on the basis of regulations issued by the public
authorities, receives direct or indirect support, and which
could have the effect of restricting trade, on the basis that
these contribute to the objectives set out in Articles 6 and 174
of the Treaty.

2.
The Commission shall, not later than (cid:133) (**), present a
well-documented report on experience gained with the
application and coexistence of
the different mechanisms
referred to in paragraph 1. This report shall, if necessary, be
accompanied by a proposal for a Community framework with
regard to support
for electricity produced from
renewable energy sources.

schemes

Any proposal for a framework should:

(a) contribute to the achievement of the national

indicative

targets;

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

market;

(c)

take into account the characteristics of different sources of
renewable energy, together with the different technologies,
and geographical differences;

(d) promote the use of

in an
effective way, and be simple and, at the same time, as
efficient as possible, particularly in terms of cost;

renewable energy sources

3.

A guarantee of origin shall:

(cid:151) specify the energy source from which the electricity was
produced, specifying the dates and places of production,
and in the case of hydroelectric installations, indicate the
capacity,

(cid:151) serve to enable producers of electricity from renewable
energy sources to demonstrate that the electricity they sell
is produced from renewable energy sources within the
meaning of this Directive.

4.
Such guarantees of origin, issued according to paragraph
2, should be mutually recognised by the Member States,
exclusively as proof of the elements referred to in paragraph 3.
Any refusal to recognise a guarantee of origin as such proof,
in particular for reasons relating to the prevention of fraud,
must
and
non-discriminatory criteria. In the event of refusal to recognise
a guarantee of origin,
the
refusing party to recognise it, particularly with regard to
objective, transparent and non-discriminatory criteria on which
such recognition is based.

the Commission may compel

transparent

objective,

based

on

be

5. Member States or the competent bodies shall put in place
appropriate mechanisms to ensure that guarantees of origin
are both accurate and reliable and they shall outline in the
report referred to in Article 3(3) the measures taken to ensure
the reliability of the guarantee system.

(*)
(**)

Three years after the entry into force of this Directive.
Four years after the entry into force of this Directive.

(***) Two years after the entry into force of this Directive.

15.5.2001

EN

Official Journal of the European Communities

C 142/9

After

consulted

6.
having
the
the Member
in the report referred to in Article 8,
Commission shall,
consider the form and methods that Member States could
follow in order to guarantee the origin of electricity produced
from renewable energy sources. If necessary, the Commission
shall propose to the European Parliament and to the Council
the adoption of common rules in this respect.

States,

Article 6

Administrative procedures

Article 7

Grid system issues

1. Without prejudice to the maintenance of the reliability
and safety of the grid, and within the limits of
the grid’s
capacity, Member States shall take the necessary measures to
ensure that
transmission system operators and distribution
system operators in their territory guarantee the transmission
and distribution of electricity produced from renewable energy
sources. They may also provide for priority access to the grid
system of electricity produced from renewable energy sources.

1. Member States or the competent bodies appointed by the
Member States
shall evaluate the existing legislative and
regulatory framework with regard to authorisation procedures
or the other procedures laid down in Article 4 of Directive
96/92/EC, which are applicable to production plants
for
electricity produced from renewable energy sources, with a
view to:

2. Member States shall put into place a legal framework or
require transmission system operators and distribution system
operators to set up and publish their standard rules relating to
the bearing of costs of
technical adaptations, such as grid
connections and grid reinforcements, which are necessary in
order to integrate new producers feeding electricity produced
from renewable energy sources into the interconnected grid.

(cid:151) reducing the regulatory and non-regulatory barriers to the
increase in electricity production from renewable energy
sources,

(cid:151) streamlining and expediting procedures at the appropriate

administrative level, and

(cid:151) ensuring that

the rules are objective,

non-discriminatory,
particularities of
technologies.

and take
the various

transparent and
the
fully into account
renewable energy source

later than (cid:133) (*), a
2. Member States shall publish, not
report on the evaluation referred to in paragraph 1, indicating,
where appropriate,
this
report is to provide (cid:151) where this is appropriate in the context
of national
legislation (cid:151) an indication of the stage reached
specifically in:

the actions taken. The purpose of

(cid:151) coordination between the different administrative bodies as
regards deadlines, reception and treatment of applications
for authorisations,

(cid:151) drawing up possible guidelines for the activities referred to
in paragraph 1, and the feasibility of a fast-track planning
procedure for producers of electricity from renewable
energy sources; and

(cid:151) the designation of authorities
disputes between authorities
authorisations and applicants for authorisations.

to act as mediators
responsible

for

in
issuing

shall be based on objective,

These rules
transparent and
non-discriminatory criteria taking particular account of all the
costs and benefits associated with the connection of
these
producers to the grid. The rules may provide for different
types of connection.

3.
Transmission system operators and distribution system
operators shall be required to provide any new producer
wishing to be connected with a comprehensive and detailed
estimate of the costs associated with the connection. Member
States may allow producers of electricity from renewable
energy sources wishing to be connected to the grid to issue a
call for tender for the connection work.

4. Member States shall put into place a legal framework or
require transmission system operators and distribution system
operators to set up and publish their standard rules relating to
the sharing of costs of system installations, such as grid
between all producers
connections
benefiting from them.

reinforcements,

and

The sharing shall be enforced by a mechanism based on
transparent and non-discriminatory criteria taking
objective,
into account
the benefits which initially and subsequently
connected producers as well as transmission 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 produced from renewable
energy sources. That
the
feasibility of introducing two-way metering.

shall examine,

inter alia,

report

3.
The Commission shall, in the report referred to in Article
8 and on the basis of the Member States’ reports referred to in
paragraph 2 of this Article, assess best practices with a view to
achieving the objectives referred to in paragraph 1.

Article 8

Summary report

(*) Two years after the entry into force of this Directive.

On the basis of the reports by Member States pursuant to
Article 3(3) and Article 6(2), the Commission shall present to

C 142/10

EN

Official Journal of the European Communities

15.5.2001

the European Parliament and the Council, no later than 31
December 2005 and thereafter every five years, a summary
report on the implementation of this Directive.

This report shall:

When Member States adopt these measures, they shall contain
a reference to this Directive or shall be accompanied by such a
reference on the occasion of
their official publication. The
methods of making such reference shall be laid down by the
Member States.

(cid:151) consider the progress made in reflecting the external costs
of electricity not produced from renewable energy sources
and the impact of State aid granted to electricity produced
from renewable energy sources,

(cid:151) take into account the possibility for Member States to meet
the national
indicative targets established in Article 3(2),
the global indicative target referred to in Article 3(4) and
the existence of discrimination between different energy
sources.

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

Article 10

Entry into force

This Directive shall enter
publication in the Official Journal of the European Communities.

into force on the day of

its

Article 11

Adressees

Article 9

Transposition

This Directive is addressed to the Member States.

Done at (cid:133)

Member States shall bring into force the laws, regulations and
administrative provisions necessary to comply with this
Directive not later than (cid:133) (*). They shall forthwith inform the
Commission thereof.

For the European Parliament

The President

For the Council

The President

(*) Two years after the entry into force of this Directive.

15.5.2001

EN

Official Journal of the European Communities

C 142/11

ANNEX

Reference values for Member States’ national indicative targets for the contribution of electricity produced
from renewable energy sources to gross electricity consumption by 2010 (1)

This Annex gives reference values for the fixing of national indicative targets for electricity produced from renewable
energy sources ((cid:145)RES-E(cid:146)), as referred to in Article 3(2)

RES-E TWh 1997 (*)

RES-E % 1997 (**)

RES-E % 2010 (***)

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

United Kingdom

0,86

3,21

24,91

3,94

37,15

66,00

0,84

46,46

0,14

3,45

39,05

14,30

19,03

72,03

7,04

1,1

8,7

4,5

8,6

19,9

15,0

3,6

16,0

2,1

3,5

70,0

38,5

24,7

49,1

1,7

6,0

29,0

12,5

20,1

29,4

21,0

13,2

25,0 (1)

5,7 (2)

9,0

78,1 (3)

39,0 (4)

31,5 (5)

60,0 (6)

10,0

Community

338,41

13,9 %

22,0 % (***)

(1) In taking into account the reference values set out in this Annex, Member States make the necessary assumption that the State aid
guidelines for environmental protection allow for the existence of national support schemes for the promotion of electricity
produced from renewable energy sources.

C 142/12

EN

Official Journal of the European Communities

15.5.2001

Data refer to the national production of RES-E in 1997.

(*)
(**) The percentage contributions of RES-E in 1997 and 2010 are based on the national production of RES-E divided by the gross
national electricity consumption. In the case of internal trade of RES-E (with recognised certification or origin registered) the
calculation of these percentages will influence 2010 figures by Member State but not the Community total.

(***) Rounded figure resulting from the reference values above.
(1)

Italy states that 22 % would be a realistic figure, on the assumption that in 2010 gross national electricity consumption will be
340 TWh.
When taking into account the reference values set out in this Annex, Italy has assumed that gross national electricity production
from renewable energy sources will attain up to 76 TWh in 2010. This figure includes the contribution of the non-biodegradable
fraction of municipal and industrial waste used in compliance with Community legislation on waste management.
In this respect, the capability to reach the indicative target as referred to in this Annex, is contingent, inter alia, upon the effective
level of the national demand for electric energy in 2010.
Taking into account the indicative reference values set out in this Annex, Luxembourg takes the view that the objective set for
2010 can be achieved only if:
(cid:151) total electricity consumption in 2010 does not exceed that of 1997,
(cid:151) wind-generated electricity can be multiplied by a factor of 15,
(cid:151) biogas-generated electricity can be multiplied by a factor of 208,
(cid:151) electricity produced from the only municipal waste incinerator in Luxembourg, which in 1997 accounted for half the

electricity produced from renewable energy sources, can be taken into account in its entirety,

(cid:151) photovoltaically generated electricity can be raised to 80 GWh, and
(cid:151) in so far as the above points can be achieved from the technical standpoint in the time allowed.
In the absence of natural resources, an additional increase in electricity generated by hydroelectric power stations is ruled out.
Austria states that 78,1 % would be a realistic figure, on the assumption that in 2010 gross national electricity consumption will
be 56,1 TWh. Due to the fact that the production of electricity from renewable sources is highly dependent on hydropower and
therefore on the annual rainfall, the figures for 1997 and 2010 should be calculated on a long-range model based on hydrologic
and climatic conditions.
Portugal, when taking into account the reference values, set out in this Annex, states that to maintain the 1997 share of electricity
produced from renewable sources as an indicative target for 2010 it was assumed that:
(cid:151) it will be possible to continue the national electricity plan building new hydro capacity higher than 10 MW;
(cid:151) other renewable capacity, only possible with financial state aid, will increase at an annual rate eight times higher than has

occurred recently.

These assumptions imply that new capacity for producing electricity from renewable sources, excluding large hydro, will increase
at a rate twice as high as the rate of increase of gross national electricity consumption.
In the Finnish action plan for renewable energy sources, objectives are set for the volume of renewable energy sources used in
2010. These objectives have been set on the basis of extensive background studies. The action plan was approved within the
Government in October 1999.
According to the Finnish action plan, the share of electricity produced from renewable energy sources by 2010 would be 31 %.
This indicative target is very ambitious and its realisation would require extensive promotion measures in Finland.

(2)

(3)

(4)

(5)

(6) When taking into account the reference values, set out in this Annex, Sweden notes that the possibility of reaching the target is
highly dependent upon climatic factors heavily affecting the level of hydropower production,
in particular variations in
pluviometry, timing of rainfall during the year and inflow. The electricity produced from hydropower can vary substantially.
During extremely dry years production may amount to 51 TWh, whereas in wet years it could amount to 78 TWh. The figure for
1997 should thus be calculated with a long-range model based on scientific facts on hydrology and climatic change.
It is a generally applied method in countries with important shares of hydropower production to use water inflow statistics
covering a time span of 30 to 60 years. Thus, according to the Swedish methodology and based on conditions during the period
1950 tot 1999, correcting for differences in total hydropower production capacity and inflow over the years, average hydropower
production amounts to 64 TWh which corresponds to a figure for 1997 of 46 %, and in this context Sweden considers 52 % to
be a more realistic figure for 2010.
Furthermore, the ability of Sweden to achieve the target is limited by the fact that the remaining unexploited rivers are protected
by law. Moreover, the ability of Sweden to reach the target is heavily contingent upon:
(cid:151) the expansion of combined heat and power (CHP) depending on population density, demand for heat and technology

development, in particular for black liquor gasification, and

(cid:151) authorisation for wind power plants in accordance with national

laws, public acceptance, technology development and

expansion of grids.

15.5.2001

EN

Official Journal of the European Communities

C 142/13

STATEMENT OF THE COUNCIL’S REASONS

I. INTRODUCTION

1. On 5 June 2000, the Commission forwarded to the Council a proposal for a Directive of the
European Parliament and of the Council on the promotion of electricity from renewable energy
sources (RES) in the internal electricity market (1). This proposal was based on Article 95 of the
Treaty.

2. The European Parliament delivered its opinion on 16 November 2000 (2). The Economic and
Social Committee and the Committee of the Regions have delivered their opinions (3) on 20 and
21 September 2000 respectively.

3. On 3 January 2001, the Commission forwarded an amended proposal to the Council (4).

4. On 23 March 2001, the Council adopted its Common Position pursuant to Article 251 of the

Treaty.

II. AIM OF PROPOSAL AND BACKGROUND

5. The purpose of this proposal is to create a common framework in order to promote an increase
in the contribution of RES to electricity production in the internal market for electricity. The
objective is to double the share of renewable energy from at present 6 % to 12 % of the gross
inland energy consumption by 2010, as set out in the Commission’s White Paper on renewable
energy sources (1997).

In order to achieve this objective, the Commission proposes that Member States set themselves
national targets for future consumption of electricity from RES. These targets should also be
compatible with national commitments in the context of the Kyoto Protocol. The Annex to the
proposal presents indicative figures for these targets.

III. ANALYSIS OF THE COMMON POSITION

A. Main changes introduced

6. At the end of its examination the Council concluded that the main focus of the Directive
should be on promoting the contribution of RES to electricity production rather than on
creating a common framework to that effect. Article 1 has
therefore been redrafted
accordingly. Moreover, in view of the very limited harmonisation that would result from the
Directive and the importance of the environmental objectives, Article 175(1) of the Treaty is
the appropriate legal basis.

7. The Common Position retains (in Article 2) a broader definition of RES in particular as regards
(a) biomass to enlarge the choice of RES that could be used by Member States while firmly
stating (recital 8) that Member States must comply with Community legislation on waste when
they use waste as an energy source; and (b) hydropower, as there appears to be no ground on
which to exclude as
(cid:145)non-renewable(cid:146) hydropower above a given capacity threshold.
Information on the capacity is nevertheless made available through the guarantee of origin
(Article 5).

(1) OJ C 311 E, 31.10.2000, p. 320.
(2) Not yet published in the Official Journal.
(3) OJ C 367, 20.12.2000, p. 5. The Committee of the Regions: OJ C 22, 24.1.2001, p. 27.
(4) Not yet published in the Official Journal.

C 142/14

EN

Official Journal of the European Communities

15.5.2001

8. The Common Position clarifies (Article 3) that the national targets to be set by Member States
for the future consumption of electricity produced from RES should be of an indicative nature.
These targets are established on the basis of ambitious reference values, which are set out in
the Annex to the Directive, together with prerequisites identified by several Member States for
achieving their national objectives. As can be seen from these prerequisites, certain factors,
over which Member States have no or little control, can affect the ability to achieve the
targets. This is one of the reasons why the Council considers that indicative rather than
mandatory targets are more appropriate and realistic. Also subsidiarity is an important
consideration in this respect.

9. The key role played by support schemes for the promotion of electricity from RES is duly
acknowledged in particular with reference to the State aid guidelines for environmental
protection (note to the Annex).

10. While noting that trade in electricity from RES and consumers’ choice will be facilitated by
guaranteeing the electricity origin, the Common Position clarifies (Article 5 and recital 10) that
the mutual recognition of guarantees of origin only concerns these guarantees as proof of the
these guarantees do not
the purchase of, and schemes for,
electricity origin and that
necessarily have implications in terms of fulfilment of national quota obligation or right to
benefit from national support mechanisms.

11. The Common Position (Article 7(1)) recognises that, due to technical constraints or the
organisation of distribution systems, it is not always possible to provide priority access stricto
sensu to transportation and distribution of electricity from RES while nevertheless guaranteeing
the transmission and distribution of this electricity.

12. The Common Position amends the dates corresponding to various reporting requirements
(Articles 3, 4, 6 and 8) in order to improve consistency and to allow sufficient time for the
measures taken by Member States to have an effect on which to report. In the same vein it
tries to limit the subject matter of the reports (for example in Article 6) and the administrative
steps to be taken by Member States (for example in Article 5) to what is necessary for
achieving the objective of the Directive.

13. To the extent possible the preamble has been redrafted in conformity with the terms of the
Interinstitutional Agreement on the drafting quality of legislation. This has led to deleting a
number of recitals contained in the Commission’s amended proposal.

B. European Parliament amendments

14. On the basis of the above remarks the Council has adopted, in full or in part, and in some
cases in substance, one third of the 55 amendments adopted by the Parliament,
including
amendments 14, 42, and 64 (second part) which were rejected by the Commission. It decided
not to retain amendments 3, 4, 5, 16, 24, 37 (first part), 56 and 59, as well as amendments 6,
7, 8 (second part), 9, 12 to 14, 23, 25, 26, 28 to 35, 42 to 47, 50 to 52, 58, 60, 64, 65 and
68 which were rejected by the Commission.

(cid:151) amendment 3: this amendment was not retained as such although the Common Position
duly acknowledges the importance of environmental considerations, inter alia, by retaining
Article 175 as the legal basis,

(cid:151) amendments 4 and 16: these amendments were not retained as such but the Common
Position stresses in several places the importance of giving support to RES ( e.g. recitals 12
and 14, Article 4 and the Annex), reducing costs (recitals 16 and 17), and increasing
competitiveness (recitals 16 and 18),

(cid:151) amendment 8: the issue of import dependency is addressed, e.g. in recitals 1 and 2,

15.5.2001

EN

Official Journal of the European Communities

C 142/15

(cid:151) amendment 59:

this amendment was not retained as such although support

to RES

(including hydropower) is addressed in several places,

(cid:151) amendment 13:

increasing the competitiveness of electricity from RES and the role of

market forces in this respect is addressed, e.g. in recitals 16 to 18,

(cid:151) amendments 17 and 18: recital 16 reflects most of these amendments while avoiding
repetition and retaining a transitional period of at least 7 years instead of at least 10 (it is
recalled that the Commission proposed a maximum of 10 years),

(cid:151) amendment 24: not retained as the operative part of

the Directive is silent on the

availability of biomass for (cid:145)normal(cid:146) use,

(cid:151) amendment 27: in substance the Council (Article 2(1) and (2)) shares Parliament’s approach
leading to a broader concept of RES, especially biomass, while agreeing with the
Commission that (cid:145)peat(cid:146) should not be included,

(cid:151) amendment 56: the Council considers that the report to be produced by the Commission
should evaluate a broad range of mechanisms according to which a producer of electricity
receives direct or indirect support, without prejudging the content or scope of the report.
There is therefore no need to list its detailed content,

(cid:151) amendment 37, second part the need to internalise external costs of electricity generation is
addressed in recital 12 (cid:151) in relation to the Community guidelines for State aid for
environmental protection (cid:151) and external costs of non-RES electricity are covered in
Article 8,

(cid:151) amendment 37 first part: is redundant given that (a) environmental protection requirements
must be integrated into other Community policies, including on the internal market; (b)
Article 4(2) already stipulates that the framework for support schemes should contribute
to the achievement of national targets, which are themselves related to environmental
objectives (promotion of electricity from RES, commitments under Kyoto),

(cid:151) amendments 38 and 39: they are partly incorporated along the lines proposed by the

Commission,

(cid:151) amendment 64 second part: Article 4(1) covers support mechanisms which could have the
effect of restricting trade on the basis that they contribute to environmental objectives,

(cid:151) amendments 48 and 66 ad Article 8(3): recital 12 and the first footnote to the Annex
confirm that the Community guidelines for State aid for environmental protection should
recognise the need for public support in favour of RES,

(cid:151) amendments 48 and 66 ad Article 8(5): at this very early stage it does not seem realistic to

request that the Commission establish targets for the period 2010 to 2020;

(cid:151) amendment 49: while agreeing with Parliament that the deadline for transposition should
be defined by a certain period of time following the entry into force of the Directive, the
Council considers that two years (instead of one) are necessary for the transposition into
national legislation.