L R AS Published on Saturday 30 May 2020 - n° 324 - Categories:Europe
One more European step in the constitution of an indissociable whole
Europeans (citizens and stakeholders) have until midnight on 3 June to comment on a future financing mechanism that would allow Member States to finance renewable energy projects in other EU countries to contribute to their 2030 RE targets.
This aims to
countries that have not yet reached their 20% renewable energy target by the end of 2020. To achieve this, Luxembourg has signed agreements with Lithuania and Estonia to allocate their surplus renewable electricity to Luxembourg. In return, Luxembourg transfers payments to Lithuania and Estonia to be spent on financing green energy projects. Financing projects in another Member State is also an option.
For 2030, the European Commission proposes new rules: a Member State will be able to directly finance projects in another Member State in order to reach the 2030 renewable energy target. The new rules should come into force at the beginning of 2021. There is a four-week consultation period (ending on 3 June) to comment on the project before it is finalised and implemented in the renewable energy directive.
Some Member States will find it a useful tool to bridge the gap between their national targets and the EU's collective target of a 32% share of renewables in final energy consumption by 2030. In 2018, renewables accounted for 18% of final energy consumption in the EU, below the 20% target for the end of 2020. There are big differences between member countries. Sweden had the highest share at 54.6%, followed by Finland and Latvia at 41.2% and 40.3%. In contrast, the Netherlands and Belgium had only 9.4% and 7.4% of renewable energy respectively.
Under the future scheme, the Member State hosting a project will receive additional investment. This will boost local employment, reduce CO2 emissions, improve air quality and reduce imports of fossil fuels.
The states funding the projects will receive a renewable energy allocation for every euro paid. They will benefit from cost savings and a diverse renewable energy potential that would have been difficult or impossible to deploy on their own territory.
The commission noted that there is no direct link or negotiation between the two countries (host and funder) as the commission manages the process and allocates the statistics.
To comment on the project : https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12369-Union-renewable-Financing-mechanism
https://www.pv-magazine.com/2020/05/28/final-call-for-feedback-on-eu-rules-for-renewables-financing/
PV Magazine of 28 May
