European co-legislators seal ambitious deals

Following on from a very positive policy victory for the solar sector on the new Renewable Energy Directive, EU institutions have sealed an ambitious deal on the new renewable energy Governance Regulation and the Energy Efficiency Directive.

The future framework for the governance of the Energy Union establishes strong foundations to ensure that the ambitious renewable deal agreed last week will be effectively delivered by European Member States. European co-legislators took onboard SolarPower Europe’s key proposals, setting the scene for a bright solar future in Europe:

  • Member States are bound by linear trajectories to deliver on their 2030 renewable energy targets: 18% by 2022, 43% by 2025 and finally 65% of their national target will have to be achieved by 2027;
  • The EU Commission is empowered to take action if any gap arises towards the collective delivery of the 2030 renewable energy target and can require under-achieving Member States to put in place additional measures at national level.
  • The solar sector can rely on strong provisions guaranteeing long-term predictability for investors, Member States are required to present detailed 10-year energy strategy plans and update them every 5-years. Member States need to submit their National Energy and Climate Plans by 31 December 2018, with final approval by the European Commission by 31 December 2019.
  • Finally, and importantly, the EU Commission will present a strategy for 2050 National decarbonisation plans, building on a “renewables-based energy system”.

The Energy Efficiency Directive represents a turning point in the development of forward-looking regulation, acknowledging the contribution of on-site solar installations to a cleaner and more efficient building stock. This was SolarPower Europe’s major priority in the negotiations, and we are delighted to announce very positive results in this matter:

  • The provisional deal sets a 32.5% non-binding target by 2030 with a revision clause in 2023. This target will be achieved through binding requirements for Member States to deliver 0.8% annual savings until 2030;
  • Measures promoting the installation of small-scale solar technologies on or in buildings can be accounted towards the fulfilment of the 0,8% annual saving target, a major achievement, which will foster the development of smarter and cleaner buildings, powered by solar.
  • The future energy efficiency framework will foster the electrification of key sectors of the economy, creating significant opportunities for the solar sector to scale-up and prosper in Europe. The primary energy factor (PEF) for electricity is set at 2.1, reflecting the increasing penetration of renewable energies in the electricity system.

Next steps:
The European Parliament and the Council of the European Union will have to give their formal approvalto the texts agreed in the informal trialogues discussions.

We will monitor the developments closely and keep you informed.

Best Regards,
Your SolarPower Europe Policy Team