Energy Weekly

Energy Weekly

Each week, Alice Pauchard, our Liaison Officer on Sustainable Energy, curates a collection of energy-related news. Stay informed with our weekly updates on the latest developments and advancements in energy policies across the European Union (EU) and beyond.

?? The Adoption Of The New Renewable Directive ( RED III)

At the beginning of October, the European Union Council introduced an updated version of the Renewable Energy Directive (Also known as RED III).?

This vote was the last step for the adoption of this new directive and demonstrates the determination to strengthen the EU's ambitions in the field of renewable energy. But wait, it’s not the end of the line just yet ! Since this is a directive (as opposed to a regulation) the content of REDIII is not directly applicable to European member states, and needs to be transposed into national law. That means that member states will have to pass new laws describing exactly what will be put in place to reach the objectives enshrined in REDIII.?

So what’s new with REDIII??

The directive sets a new target: 42.5% renewable energy in the European energy mix by 2030, with a recommendation for member states to aim for 45%. Given that the share of renewable energy in the energy mix currently stands at 22.1%, this new text implies doubling this share by 2030, primarily through additional wind and solar capacity.

This new direction (RED III) is part of the "Fit for 55" package aimed at reducing the EU's greenhouse gas emissions by 55% by 2030. It is also part of "REpowerEU", a plan to reduce Europe's dependence on fossil fuels imported from Russia.

To achieve these objectives, the directive will reduce the administrative burden on states by facilitating the authorization process for the installation of new renewable energy infrastructures. National authorities will have 12 months to approve projects in renewable energy zones, compared with 24 months elsewhere.?

In the transport sector, one of the major objectives is to reduce greenhouse gas emissions by 14.5% by 2030. The share of renewable energy is to rise from 14% to 29%. Parliament has also introduced a 5% target for innovative renewable energy technologies in new installations. Stricter criteria have also been established to protect soil quality and biodiversity.?

By introducing specific renewable energy targets for sectors that are major transmitters of greenhouse gasses, the directive represents a historic step in the fight against climate change.

More resources on this topic:

?? https://www.consilium.europa.eu/en/press/press-releases/2023/10/09/renewable-energy-council-adopts-new-rules

?? https://www.transportenvironment.org/discover/what-the-eus-new-renewable-energy-directive-mean-for-clean-fuels-in-europe/

?? https://www.reneweuropegroup.eu/news/2023-09-12/renewable-energy-directive-new-targets-ensure-eu-s-energy-independence-and-lay-the-groundwork-for-a-climate-resilient-europe


?? International Climate and Energy Summit in Madrid

On October 2, Madrid hosted the International Summit on Energy and Climate. Co-organised by the Spanish government, which currently holds the EU Council* presidency, and the International Energy Agency, the event brought together representatives from around the world just a few weeks before the start of COP28.

The summit was an opportunity for many countries and international organisations to express their support for the creation of a global coalition to end fossil fuel subsidies, recognised as the main cause of global warming. The coalition was launched by the Dutch Minister for Climate, Rob Jetten, who called for the elimination of tax incentives and subsidies for fossil fuels. He expressed his desire to see the coalition's demands put into practice at COP28.?

The event was also marked by speeches from the UN Secretary General Antonio Guterres and COP28 President Sultan Al Jaber. They reaffirmed their support for actions to promote clean energy and reduce dependence on fossil fuels in the run-up to COP28, while meeting the commitments of the Paris Agreement.

Discussions in Madrid clearly underlined that the actions required to achieve these objectives are well-defined. The presentation of the IEA report entitled "Net Zero Roadmap: A Global Pathway to Keep the 1.5 °C Goal in Reach - 2023 Update" reminded participants that to achieve a reduction in global emissions to net zero by 2050, a significant shift in ambition and enhanced international cooperation are imperative.??

To maintain the objective of limiting global warming to 1.5 degrees, the summit presented 5 key objectives for COP28:?

  1. Support the tripling of renewable energy capacity by 2030.
  2. Aim to double the rate of improvement in global energy intensity by 2030.
  3. Ensure the orderly decline of fossil fuel use.
  4. Recognise the need for large-scale investment.
  5. Highlight the crucial role and opportunities for the fossil fuel industry to reduce methane emissions from their operations, with the aim of cutting them by 75% by 2030.

*The Council of the EU represents the governments of the EU member states and brings together their ministers by area of competence. Together with the European Parliament, they are responsible for amending and adopting European laws. It is therefore different from the European Council, which brings together the heads of state and government, who together define the EU’s major political orientations.?

More resources on this topic:

?? https://www.iea.org/events/climate-and-energy-summit-a-grand-coalition-to-keep-1-5-c-within-reach

?? https://www.eureporter.co/politics/european-commission/2023/10/03/commissioner-simson-participates-in-international-climate-and-energy-summit-in-madrid/

?? https://www.dw.com/en/cop28-climate-leaders-meet-in-madrid-ahead-of-summit/a-66979855


?? Electricity Market Reform: Council Reached An Agreement

After months of negotiations, the Member States reached a common position on Tuesday October 17 concerning the electricity market reform. This agreement was eagerly awaited, having been blocked for several months due to differences between France and Germany over support for the nuclear industry.??

The desire to reform the organisation of the electricity market arose in response to the sharp rise in prices linked to the war in Ukraine. To avoid similar price shocks in the future, the EU has decided to reconfigure its electricity market.?

The main aim of this reform is to make electricity prices less dependent on the volatility of gas prices. At present, the price of electricity is closely linked to the cost of the fossil fuels used to produce it. Consequently, this reform aims to protect consumers against sudden price rises. It will also broaden the options available to consumers when concluding electricity contracts and facilitate their access to renewable energies.

This overhaul of the European electricity market will also bring greater stability and boost business competitiveness. Businesses will benefit from more stable prices thanks to long-term contracts, while electricity producers will enjoy more stable revenues.?

Finally, the new rules will facilitate the integration of renewable energies into the system, as renewable energy production will be more predictable (thanks to greater transparency and better monitoring of the energy market). This development should make it possible to double the share of solar and wind power by 2030.

This text, approved by the Member States, will now be the subject of negotiations with the Members of the European Parliament.

More resources on this topic:

?? https://www.consilium.europa.eu/fr/press/press-releases/2023/10/17/reform-of-electricity-market-design-council-reaches-agreement/

?? https://www.euronews.com/my-europe/2023/10/17/eu-energy-ministers-strike-deal-on-electricity-market-reform

?? https://www.euractiv.com/section/electricity/news/deal-on-eu-electricity-market-reform-what-did-paris-and-berlin-obtain/


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