Outlook: Energy Transition and Regulatory Framework 2.0: Insights from the European Union
Focused on RES generation, the previous chapters of this book provided an overview of the requirements, opportunities and challenges of shaping a consumer-inclusive energy transition from a theorical and empirical perspective. This chapter explains why further pursuing the energy transition requires entering a new phase with profound regulatory changes, even for front-runners. Against the background of recent European Union (EU) policy initiatives in this area and our country cases, this chapter presents policy leads in the EU and beyond for a consumer-centric energy transition and market design mindful of system requirements. This involves contradictory goals and entails a series of trade-offs: (1) policy efficiency and simplicity: integrating new (and most of the time small and inexperienced) actors in a complex setting requires an efficient but simple framework to reduce transaction costs, for example, concerning balancing forecast responsibilities and allocation schemes like tenders; (2) predictability and flexibility: support schemes should be predictable both for investors and public finances but should be flexible for adapting to evolving market conditions; (3) sharing of benefits and costs: exemptions for some consumers lead to a higher end-price supported by the remaining consumers, which threatens their acceptance of vRES. These trade-offs touch upon particular interests of different actors that may be conflicting like those for example of consumers as (co-)owners on the one side and grid operators and other final end consumers on the other side. One way to reconcile these interests and align them with EU regulatory policy is the support and deployment of innovative organisational and contractual arrangements that would allow to pool and scale RE investments (co-)owned by consumers while opening them to combinations of municipal or commercial investments.
- Arabella advisors. (2015). Measuring the growth of the global fossil fuel divestment and clean energy investment movement. Washington, DC: Arabella Advisors. Retrieved July 5, 2018, from https://www.arabellaadvisors.com/wp-content/uploads/2016/10/Measuring-the-Growth-of-the-Divestment-Movement.pdf.
- Arabella advisors. (2016). The global fossil fuel divestment and clean energy investment movement. Retrieved July 5, 2018 from https://www.arabellaadvisors.com/wp-content/uploads/2016/12/Global_Divestment_Report_2016.pdf.
- Berrod, F., & Ullestad, A. (2016). La mutation des frontières dans l’espace européen de l’énergie (1ère édition). Bruxelles BE: Larcier. Retrieved from http://editionslarcier.larciergroup.com/titres/132870/la-mutation-des-frontieres-dans-l-espace-europeen-de-l-energie.html.
- Buchan, D. (2015). Chapter 14: Energy policy in policy-making in the European Union. In Policy-making in the European Union (7th ed., pp. 344–366). Oxford University Press.Google Scholar
- Council of the EU (SG). (2018a, September 10). Proposal for a regulation on the internal market for electricity, 5834/3/18 REV 3. Retrieved September 13, 2018, from http://data.consilium.europa.eu/doc/document/ST-5834-2018-REV-3/en/pdf.
- Council of the EU (SG). (2018b, September 10). Proposal for a directive on common rules for the internal market for electricity, 7506/3/18 REV 3. Retrieved September 13, 2018, from http://data.consilium.europa.eu/doc/document/ST-7506-2018-REV-3/en/pdf.
- Council of the EU (SG). (2018c, June 21). Political agreement, recast of Renewable Energy Directive (RED II). Retrieved July 6, 2018, from http://data.consilium.europa.eu/doc/document/ST-10308-2018-INIT/en/pdf.
- Ecofys, Fraunhofer ISI, Held, A., Ragwitz, M., Gephart, M., De Visser, E., & Klessmann, C. (2014). Design features of support schemes for renewable electricity (No. DESNL13116) (pp. 1–95).Google Scholar
- Euractiv, & Keating, D. (2018, June 13). Video highlights: Spain and Italy may stoke clean energy shakeup today. Euractiv.Com. Retrieved from https://www.euractiv.com/section/energy/news/video-highlights-spain-and-italy-may-stoke-clean-energy-shakeup-today/.
- Euractiv, Keating, D., & Simon, F. (2018, June 14). EU strikes deal on 32% renewable energy target and palm oil ban after all-night session. Euractiv.Com. Retrieved from https://www.euractiv.com/section/energy/news/eu-strikes-deal-on-32-renewable-energy-target-and-palm-oil-ban-after-all-night-session/.
- European Commission. (2014). Guidelines on State aid for environmental protection and energy 2014–2020, 2014/C 200/01 §. Retrieved from http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52014XC0628(01)&from=EN.
- European Commission. (2015a). A framework strategy for a resilient energy union with a forward-looking climate change policy. Pub. L. No. COM2015/80/EC, COM2015/80/EC COM2015/80/EC 21. Retrieved from http://ec.europa.eu/energy/sites/ener/files/publication/FOR%20WEB%20energyunion_with%20_annex_en.pdf.
- European Commission. (2015b). Best practices on renewable energy self consumption, SWD2015/141/EC §. Retrieved from http://ec.europa.eu/energy/sites/ener/files/documents/1_EN_autre_document_travail_service_part1_v6.pdf.
- European Commission. (2015c). Delivering a new deal for energy consumers. Pub. L. No. COM2015/339/EC, COM2015/339/EC COM2015/339/EC 10. Retrieved from http://ec.europa.eu/energy/sites/ener/files/publication/Energy_consumers_en.pdf.
- European Commission. (2015d). Launching the public consultation process on a new energy market design. Pub. L. No. COM2015/340/EC, COM2015/340/EC COM2015/340/EC (2015). Retrieved from http://ec.europa.eu/energy/sites/ener/files/publication/web_1_EN_ACT_part1_v11_en.pdf.
- European Commission. (2016). Energy prices and costs in Europe (No. COM(2016)769). Retrieved from https://ec.europa.eu/energy/sites/ener/files/documents/com_2016_769.en_.pdf.
- European Commission. (2018a, June 14). Press release: Europe leads the global clean energy transition: Commission welcomes ambitious agreement on further renewable energy development in the EU. Retrieved July 6, 2018, from http://europa.eu/rapid/press-release_STATEMENT-18-4155_en.htm.
- European Commission. (2018b, June 20). Press release: The Energy Union gets simplified, robust and transparent governance. Retrieved July 6, 2018, from http://europa.eu/rapid/press-release_IP-18-4229_en.htm.
- European Economic and Social Committee. (2015). Changing the future of energy: Civil society as a main player in renewable energy generation (No. EESC-2014-04780) (p. 30). Retrieved from http://www.eesc.europa.eu/resources/docs/eesc-2014-04780-00-04-tcd-tra-en.docx.
- Eurostat. (2017). EU energy in figures: Statistical pocketbook 2017. Retrieved from https://publications.europa.eu/en/publication-detail/-/publication/2e046bd0-b542-11e7-837e-01aa75ed71a1/language-en/format-PDF.
- Friedrich Ebert Stiftung, Ecke, J., & Herrmann, N. (2016). Prospects for consumers in a European Energy Union, 3–24.Google Scholar
- International Energy Agency. (2014). World energy investment lookout factsheet. Retrieved from https://www.iea.org/media/140603_WEOinvestment_Factsheets.pdf.
- International Energy Agency. (2017a). Market report series: Renewables 2017—Analysis and forecasts to 2022—Executive summary. Retrieved from http://www.iea.org/bookshop/761-Market_Report_Series:_Renewables_2017.
- International Energy Agency. (2017b). Renewables information 2017—Overview. Retrieved from http://www.iea.org/publications/freepublications/publication/renewables-information%2D%2D-2017-edition%2D%2D-overview.html.
- International Energy Agency. (2017c). World energy investment 2017. Retrieved from http://www.iea.org/bookshop/759-World_Energy_Investment_2017.
- International Energy Agency. (2017d). World energy outlook 2017—Executive summary. Retrieved from https://www.iea.org/publications/freepublications/publication/world-energy-outlook-2017%2D%2D-executive-summary%2D%2D-english-version.html.
- International Renewable Energy Agency. (2017). Adapting market design to high shares of variable renewable energy. Retrieved from http://www.irena.org/publications/2017/May/Adapting-Market-Design-to-High-Shares-of-Variable-Renewable-Energy.
- International Renewable Energy Agency. (2018a). Global landscape of renewable energy finance. Retrieved from http://www.irena.org/publications/2018/Jan/Global-Landscape-of-Renewable-Energy-Finance.
- International Renewable Energy Agency. (2018b). Renewable energy auctions: Analysing 2016. Retrieved from http://www.irena.org/publications/2017/Jun/Renewable-Energy-Auctions-Analysing-2016.
- International Renewable Energy Agency. (2018c). Renewable energy prospects for the European Union. Retrieved from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/Feb/IRENA_REmap-EU_2018_summary.pdf?la=en&hash=818E3BDBFC16B90E1D0317C5AA5B07C8ED27F9EF.
- International Renewable Energy Agency. (2018d). Renewable power generation costs in 2017 (No. 978-92-9260- 040–2). Retrieved from http://www.irena.org/publications/2018/Jan/Renewable-power-generation-costs-in-2017.
- Turmes, C. (2017). Transition énergétique: une chance pour l’Europe. Les petits matins. Retrieved from http://site.claudeturmes.lu/mon-livre/.
- Welsch, M., Pye, S., Keles, D., Faure-Schuyer, A., Shivakumar, A., Deane, P., et al. (2017). Europe’s energy transition: Insights for policy making. Elsevier Academic Press. London; San Diego, CA; Cambridge, MA; Oxford, UKGoogle Scholar
- Zachmann, G. (2011). Reconciling the single market objective with the renewable energy objective. Think Global Act European, 3, 31–35. Retrieved from https://www.google.de/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiAud2Ki-bLAhXKfhoKHYQKDw8QFggiMAA&url=http%3A%2F%2Fwww.institutdelors.eu%2Fmedia%2Ftgae20111ezachmann.pdf&usg=AFQjCNE0Ctr43-ipoHQU3rjmxURiIZINWg&bvm=bv.117868183,d.d2s.
- Zachmann, G. (2015). The European Energy Union: Slogan or an important step towards integration? Friedrich Ebert Stiftung. Retrieved from http://library.fes.de/pdf-files/wiso/11495.pdf.