WindEurope position papers
Creating a business case for wind after 2020
The investment climate in the European power sector is deteriorating. Projects become riskier and struggle to attract affordable capital owing to a lack of visibility on their long-term revenues. This is particularly relevant for wind energy projects, which require large upfront investment and are highly sensitive to financing conditions.
This paper explains how revenue stabilisation mechanisms, complemented by spot market signals, can help mitigate risk while reducing the decarbonisation costs borne by final consumers. It also explores the potential of commercial long-term contracts (PPAs) between wind power producers and corporations, which are currently on the rise in Europe.
The potential of energy sector integration
- Sector integration is a win-win for the European energy system and a boost for the wider economy.
- Sector integration is technically and economically feasible today.
- Regulatory barriers must be removed to realise full potential.
Associations call on Commission President Juncker to make EU market fit for renewables
The continuation of the energy transition and, in particular, the continued cost-effective integration of renewables in the energy system require an appropriate market framework. The Commission’s upcoming legislative proposals on market design need to adjust market rules to flexible renewable energy generation.
11 companies call for investor protection in EU
While the industry acknowledges the need to adjust regulatory frameworks over time to respond to declining technology costs and market developments, retroactive changes are a misguided answer and erode investor confidence in the EU energy infrastructure sector where costs are sunk from the moment of the investment and there is very limited ability to improve profitability thereafter. Accordingly, investors in the space have no choice but to expect long-term regulatory stability for renewable energy plants. Thus any regulatory change should be concerted, non-retroactive, non-discriminatory, and avoid any legal gaps that would undermine investor certainty.
Wind energy: backbone of the EU global leadership in renewables
The European Commission’s President Jean-Claude Juncker has pledged in 2014 to make the EU’s the “world number one in renewables”. Wind energy is set to be the backbone of the EU’s global leadership in renewables as it will provide the largest contribution – 23,9% – to the 2030 EU-wide renewable energy target. Global leadership requires proactive industrial, innovation and trade policies that sustain a vibrant home market. This paper aims to input to the Energy Union Integrated strategy for research, innovation and competitiveness, the European Union’s trade agenda and the upcoming legislative package on renewable energy and market design.
Implementation guidelines for the network code requirements for generators
In May 2016, ENTSO-e developed and published the European network code on requirements for generators. It provides a large number of not fully defined requirements and specifications. In many cases, these non-exhaustive requirements lead to ambiguity on the technical performance needed, as well as to uncertainty on the regulatory framework for implementing the new set of rules, which will apply as from May 2019.
The present document aims at facilitating the implementation of the European network code by providing the views and expertise of the wind industry sector on the technical issues of fault ride through and reactive power capability.
Associations say EU law must hold Member States to account on renewables ambition
In October 2014, 28 EU Heads of State agreed that a binding target for renewables should be set at EU level to meet their collective climate and energy ambition. Since then, the European Parliament has consistently backed a binding renewable energy target for 2030, most recently in June 2016.
The EU power sector faces an investment dilemma owing to overcapacities and old infrastructure and the new to quickly reduce emissions in the power sector. A proper assessment on the future system adequacy has to happen before introducing regulatory mechanism that incentivise investments on additional capacity. WindEurope shows in this position paper the benefits for member states if they chose a coordinated regional approach, which is based on probabilistic methods that account for the contribution of variable renewable energy sources.
Priority dispatch and curtailment
Making the market fit for renewables requires additional efforts on curtailment rules and priority dispatch provision. The latter has been instrumental in bringing wind power growth to covers 11.4% of the EU’s total electricity consumption today. Current discussions on its removal and the possibility to apply retroactive changes undermine investors’ confidence, which could slow down the agreed energy transition. WindEurope explains the market design conditions necessary to provide a level playing field to wind generators and eventually reduce curtailments.
WindEurope expects up to 76GW of installed wind energy capacity to reach the end of their operational life between 2020 and 2030. Repowering allows harnessing more wind power whilst preserving jobs for local communities. The position paper lays out how member states can incentivise repowering, alongside greenfield projects, to help meet the 2030 targets cost-effectively.
Industry statement: Making the EU ETS relevant after the Paris Agreement
Despite adopting measures such as backloading, the Market Stability Reserve (MSR) and an increased Linear Reduction Factor (LRF), the surplus of allowances will continue to depress the market in the short to medium term, keeping ETS ineffective as a robust carbon price signal until late into the 2020s. We, a group of companies involved across the energy sector, urge you to use the current revision of EU ETS to deliver the required low carbon investment signals to meet the long term objective agreed in Paris.
Safe energy supply also depends on a balancing the electricity system. A number of generation and demand options offer balancing services today. From a technical point of view, wind power plants could already contribute to these services but in most cases the markets are not well-suited for the participation of renewable energy technologies. This is why WindEurope has developed the industry’s “ten commandments” for better procurement rules and pricing system. As a general principle, all generators should have the right – but not the obligation – to participate as well as receive adequate remuneration.
Renewables associations call for strong national plans on Energy Union
The EU renewable energy sector welcomes the development of integrated national plans and reports as part of the governance of the Energy Union but stresses that streamlining of planning and reporting obligations should not come at the expense of detailed and good quality data. National plans for the post-2020 period should be based on standardised, binding templates enshrined in legislation to ensure the cost-effective delivery of the 2030 EU renewables target. The European Commission should also pursue an active political dialogue with Member States to make sure that concrete national commitments and enabling policies for renewables are in place in due time.
Renewables associations call on EC to model higher RES targets
To maintain global leadership in renewables, Europe should now make a firm and resolute commitment to a flourishing and vibrant domestic renewable energy market by 2030. The European renewables industry calls on the European Commission to factor in higher renewable energy ambition in the post-2020 Renewable Energy Directive.
Principles for an effective Innovation Fund
To become the world’s number one in renewable energy technologies, it is vital for the EU and its member states to bolster leading technologies in Europe’s renewable energy industry through strong industrial and innovation policies. The new Innovation Fund should build on the lessons learnt from the NER 300 to further boost investments in innovative and sustainable energy technologies.
WindEurope’s position on the post-2020 Renewable Energy Directive
A robust post-2020 renewables regulatory framework is key to securing the EU’s position as the world number one in renewables and maximising the benefits of wind deployment to the European economy. WindEurope believes that Member States will need to raise ambition towards a collective EU renewables target of at least 30% to match international competition and foster a vibrant home market sustaining the European wind industry’s competitive edge and technology innovation efforts.
WindEurope response to public consultation on “Streamlining planning and reporting obligations as part of the Energy Union governance”
On 11 January 2016, the European Commission launched a public consultation on national planning and reporting obligations for the post-2020 period in the framework of the Energy Union governance regime. WindEurope calls for a reliable planning and reporting process that can provide early visibility on national 2030 renewable energy commitments and policies and ensure the cost-effective delivery of the binding EU renew¬able energy target.
EWEA Position papers
Follow the link to view previous position papers.