Renewable energy sources for all Europeans
The last of the eight legislative acts constituting the Winter Energy Package was published in the European Union’s Official Journal in June. Submitted by the European Commission in November 2016, the changes to EU energy legislation aiming to enhance energy efficiency, reduce carbon intensity, shift the focus towards consumers, and build the energy sector upon renewable sources have thus been completed.
The support of electricity from renewable energy sources will primarily be regulated by Directive No. 2018/2001, repealing current main Directive No. 2009/28/EC. The new directive is part of the EU’s plan to become a leader in renewable energy sources, setting a target proportion of 32% for renewable energy sources in the EU’s total gross energy consumption by 2030. Taking into account the performance to date, the Commission may decide to further increase the proportion in 2023. The individual member states should participate in this plan by setting their own goals within their integrated national energy and climate plans.
To achieve the set goals, the member states will be allowed to continue to apply the support regimes in compliance with the principles of openness, transparency, compatibility, non-discrimination and cost efficiency. An amendment to the Act on Renewable Energy Sources currently in preparation introduces the provision of operating support for new production plants in form of auctions, which should be consistent with all criteria set by the directive. The member states may also decide to what extent they will potentially support electricity generated from renewable sources in another member state. If they decide to do so, they will have the right to require physical proof of the import of such electricity, and to limit the support only to the producers of the member states with which they have a direct network connection. Under certain conditions, the member states may limit the provision of financial support to certain technologies.
In contrast with Directive No. 2009/28/EC, the new directive does not generally guarantee the producers of electricity from renewable energy sources the right to a preferential connection to a distribution network. On the other hand, however, the directive aims to substantially simplify and shorten the administrative procedure to obtain a permit for the construction, modernisation and operation of plants for generating electricity from renewable resources. With certain exceptions, the permit-granting process may not exceed two years, and only one year where smaller production plants are concerned. Producers will be able to obtain all necessary permits and approvals via a single administrative contact point. For renewables self-consumers, i.e. producers who use electricity from renewable sources for their own consumption or sell it without doing it as part of their principal business activity, with an installed capacity of 10.8 kW or less, the connection to a distribution network will be possible through a simple notification procedure to the appropriate distribution network operator. The member states may then decide to apply the simple notification procedure also to production plants with an installed capacity higher than 10.8 kW but less than 50 kW if network stability, reliability and safety is not threatened.
The Czech Republic must transpose the majority of the directive’s provisions by 30 June 2021. The above-mentioned amendment to the Act on Renewable Energy Sources, introducing an auction in which the winning electricity producers obtain financial support, is yet to be submitted to the government. In addition, the deputies’ chamber is currently discussing an amendment to the Energy Act prepared in response to the European Commission’s criticism of the existing regulation. The Czech Republic now finds itself in a situation when it has to amend the regulations that have been incorrectly transposed and must prepare for the implementation of new directives and regulations. The energy sector will therefore change dramatically in the upcoming years.