The Guidelines on State aid for environmental protection and energy for 2014 to 2020 require Member States to set up competitive bidding processes (also called auctions) from 2017 onwards, to grant supportJust like administratively set support, auction-allocated su... to all new renewable energy (RE) installations, with only a very few exceptions (European Commission, 2014). Given the central sole auctions are set to play in supportJust like administratively set support, auction-allocated su... schemes, RE market actors face the question of how to secure supportJust like administratively set support, auction-allocated su... by either successfully participating in an auctionAn auction is a market mechanism with the aims of allocating... or qualifying for an exemption. At the same time, the recast of the Renewable Energy Directive (RED II) acknowledges the importance of renewable energy communities (RECs) and requires Member States to consider the specificities of these market actors when designing supportJust like administratively set support, auction-allocated su... schemes. Considering these developments, this report assesses the impact of auctions on RECs and measures to supportJust like administratively set support, auction-allocated su... these market actors in/despite auctions.
The first part of the paper describes the challenge of finding a definition for RECs, discusses the risks faced by RECs in renewable energy auctions, and explores measures to promote RECs.
The second part of the report discusses experiences from three countries that have either implemented measures to supportJust like administratively set support, auction-allocated su... RECs and/or more broadly promote local acceptance within the auctionAn auction is a market mechanism with the aims of allocating... (Germany and France) or supporting measures outside the auctionAn auction is a market mechanism with the aims of allocating... (Denmark).
The report is structured as follows:
Section 2 discusses the relevance of RECs and the challenge of finding a unique definition;
Section 3 investigates the risks faced by energy community project developers in RE auctions;
Section 4 examines measures to address the risks faced by energy community project developers in RE auctions;
Section 5 analyses experiences with measures implemented in Germany, France, and Denmark to supportJust like administratively set support, auction-allocated su... RECs and/or more broadly promote local acceptance;
Section 6 outlines lesson learnt.
Download the report here.
