Connect with us

Electricity interconnectivity

Development of RES or electricity price increases

SHARE:

Published

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

Between 2021 and 2030, the cost of energy generation will increase by 61%, if Poland actually follows the scenario of the government's Energy Policy of Poland until 2040 (PEP2040). An alternative scenario developed by Instrat could reduce costs by 31-50 percent compared to PEP2040. Increasing the ambition for RES development in Poland is in the interest of every household and business. Otherwise, it will lead to a drastic increase in electricity prices, says Adrianna Wrona, co-author of the report.

In December 2020, EU member states agreed to increase national targets for the share of RES in the economy and align them with the updated target of reducing emissions by 55 percent by 2030 (relative to 1990). Ahead of the "Fit for 55" negotiations, Poland appears to be setting itself on a collision course by proposing a RES target in PEP2040 - almost half the expected EU average.

New modeling by the Instrat Foundation shows that we can achieve an onshore wind capacity of 44 GW, offshore wind capacity of 31 GW, and for rooftop and ground-mounted PV it is about 79 GW, taking into account strict criteria for the location and rate of development of new plants. The report published today proves that it is possible to achieve over 70 percent share of RES in electricity production in 2030, while PEP2040 declares an unrealistic value of 32 percent.

Advertisement

Assuming the implementation of the RES development scenario proposed by Instrat, Poland would achieve a 65 percent reduction in CO2 emissions in 2030 in the power sector compared to 2015 - The potential of RES in our country is sufficient to achieve the EU 2030 climate targets and almost completely decarbonize the electricity mix by 2040. Unfortunately, this is what we see - in the form of blocking the development of onshore wind energy, destabilization of the law, sudden changes in support mechanisms. The national RES target should be significantly increased and the national law must support its achievement - comments Paweł Czyżak, co-author of the analysis.

The power structure proposed by Instrat allows for balancing the power system  during the yearly peak load with no production from wind and solar and no cross-border connections available. However, in the PEP2040 scenario, this is only possible with timely implementation of the nuclear power program, which is already significantly delayed. - Successive shutdowns and failures of domestic power plants show that stability of electricity supply in Poland may soon no longer be a guarantee. In order to ensure national energy security, we have to bet on technologies that can be built immediately - e.g. windmills, photovoltaic installations, batteries - enumerates Paweł Czyżak.

Denying the role of RES in electricity production not only raises doubts about energy security, but will also lead to a threat to the competitiveness of the Polish economy and making us dependent on energy imports. So what should be done? - It is necessary, among other things, to unblock the development of onshore wind farms, implement offshore wind farms on time, postpone changes to the prosumer energy settlement system, create a system of incentives for the development of energy storage, adopt a hydrogen strategy, increase funding for grid modernization, and, most of all, to declare an ambitious RES target following the EU resolutions - concludes Adrianna Wrona.

Advertisement

Contact:

Electricity interconnectivity

Commission approves Greek measures to increase access to electricity for PPC's competitors

Published

on

The European Commission has made legally binding, under EU antitrust rules, measures proposed by Greece to allow the competitors of Public Power Corporation (PPC), the Greek state-owned electricity incumbent, to purchase more electricity on a longer-term basis. Greece submitted these measures to remove the distortion created by PPC's exclusive access to lignite-fired generation, which the Commission and Union courts had found to create an inequality of opportunity in Greek electricity markets. The proposed remedies will lapse when existing lignite plants stop operating commercially (which is currently expected by 2023) or, at the latest, by 31 December 2024.

In its decision of March 2008, the Commission found that Greece had infringed competition rules by giving PPC privileged access rights to lignite. The Commission called on Greece to propose measures to correct the anti-competitive effects of that infringement. Due to appeals at both the General Court and European Court of Justice, and difficulties with the implementation of a previous remedies submission, such corrective measures have not been implemented so far. On 1 September 2021, Greece submitted an amended version of the remedies.

The Commission has concluded that the proposed measures fully address the infringement identified by the Commission in its 2008 Decision, in light of the Greek plan to decommission all existing lignite-fired generation by 2023 in line with Greece's and the EU's environmental objectives. Executive Vice President Margrethe Vestager, in charge of competition policy, said: “The decision and the measures proposed by Greece will enable PPC's competitors to better hedge against price volatility, which is a vital element for them to compete in the market for retail electricity and offer stable prices to consumers. The measures work hand in hand with the Greek plan to decommission its highly polluting lignite-fired power plants by discouraging the usage of these plants, fully in line with the European Green Deal and the EU's climate objectives.”

Advertisement

A full press release is available online.

Advertisement
Continue Reading

Electricity interconnectivity

Commission approves €30.5 billion French scheme to support production of electricity from renewable energy sources

Published

on

The European Commission has approved, under EU state aid rules, a French aid scheme to support renewable electricity production. The measure will help France achieve its renewable energy targets without unduly distorting competition and will contribute to the European objective of achieving climate neutrality by 2050.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: “This aid measure will stimulate development of key renewable energy sources, and support a transition to an environmentally sustainable energy supply, in line with the EU Green Deal objectives. The selection of the beneficiaries through a competitive bidding process will ensure the best value for taxpayers' money while maintaining competition in the French energy market.” 

The French scheme

Advertisement

France notified the Commission of its intention to introduce a new scheme to support electricity produced from renewable energy sources, namely to onshore operators of solar, onshore wind and hydroelectric installations. The scheme grants support to these operators awarded via competitive tenders. In particular, the measure includes seven types of tenders for a total of 34 GW of new renewables capacity that will be organized between 2021 and 2026: (i) solar on the ground, (ii) solar on buildings, (iii) onshore wind, (iv) hydroelectric installations, (v) innovative solar, (vi) self-consumption and (vii) a technology-neutral tender. The support takes the form of a premium on top of the electricity market price. The measure has a provisional total budget of around €30.5 billion. The scheme is open until 2026 and aid can be paid out for a maximum period of 20 years after the new renewable installation is connected to the grid.

Commission's assessment

The Commission assessed the measure under EU state aid rules, in particular the 2014 Guidelines on state aid for environmental protection and energy.

Advertisement

The Commission found that the aid is necessary to further develop the renewable energy generation to meet France's environmental goals. It also has an incentive effect, as the projects would otherwise not take place in the absence of public support. Furthermore, the aid is proportionate and limited to the minimum necessary, as the level of aid will be set through competitive tenders. In addition, the Commission found that the positive effects of the measure, in particular, the positive environmental effects outweigh any possible negative effects in terms of distortions to competition. Finally, France also committed to carry out an ex-post evaluation to assess the features and implementation of the renewables scheme.

On this basis, the Commission concluded that the French scheme is in line with EU State aid rules, as it will facilitate the development of renewable electricity production from various technologies in France and reduce greenhouse gas emissions, in line with the European Green Deal and without unduly distorting competition.

Background

The Commission's 2014 Guidelines on State Aid for Environmental Protection and Energy allow member states to support the production of electricity from renewable energy sources, subject to certain conditions. These rules aim to help member states meet the EU's ambitious energy and climate targets at the least possible cost for taxpayers and without undue distortions of competition in the Single Market.

The Renewable Energy Directive of 2018 established an EU-wide binding renewable energy target of 32% by 2030. With the European Green Deal Communication in 2019, the Commission reinforced its climate ambitions, setting an objective of no net emissions of greenhouse gases in 2050. The recently adopted European Climate Law, which enshrines the 2050 climate neutrality objective and introduces the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, set the ground for the fit for 55' legislative proposals adopted by the Commission on 14 July 2021. Among these proposals, the Commission has presented an amendment to the Renewable Energy Directive, which sets an increased target to produce 40% of EU energy from renewable sources by 2030.

The non-confidential version of the decision will be made available under the case number SA.50272 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.

Continue Reading

Electricity interconnectivity

Commission approves €400 million Danish aid scheme to support production of electricity from renewable energy sources

Published

on

The European Commission has approved, under EU state aid rules, a Danish aid scheme to support electricity production from renewable sources. The measure will help Denmark reach its renewable energy targets without unduly distorting competition and will contribute to the European objective of achieving climate neutrality by 2050. Denmark notified the Commission of its intention to introduce a new scheme to support electricity produced from renewable energy sources, namely onshore wind turbines, offshore wind turbines, wave power plants, hydroelectric power plants and solar PV.

The aid will be awarded through a competitive tendering procedure organised in 2021-2024 and will take the form of a two-way contract-for-difference premium.. The measure has a total maximum budget of approximately €400 million (DKK 3 billion). The scheme is open until 2024 and aid can be paid out for a maximum of 20 years after the renewable electricity is connected to the grid. The Commission assessed the measure under EU state aid rules, in particular the 2014 Guidelines on state aid for environmental protection and energy.

On this basis, the Commission concluded that the Danish scheme is in line with EU state aid rules, as it will facilitate the development of renewable electricity production from various technologies in Denmark and reduce greenhouse gas emissions, in line with the European Green Deal and without unduly distorting competition.

Advertisement

Executive Vice President Margrethe Vestager, in charge of competition policy (pictured), said: “This Danish scheme will contribute to substantial reductions in greenhouse emissions, supporting the objectives of the Green Deal. It will provide important support to a wide range of technologies generating renewable electricity, in line with EU rules. The wide eligibility criteria and the selection of the beneficiaries through a competitive bidding process will ensure the best value for taxpayers money and will minimise possible distortions of competition.”

Advertisement
Continue Reading
Advertisement
Advertisement
Advertisement

Trending