Public consultation on the EU State Aid Guidelines for Energy and Environmental Protection

How the EU State Aid framework should enable a Paris-proof energy market and accelerate the locally-driven energy transition


Summary of Energy Cities’ response

We advocate for an EU State aid legal framework that supports a flexible, efficient, sustainable and locally-driven energy market. State Aid rules must be a tool to drive the decarbonisation of the energy markets and the implementation of renewables and energy efficiency solutions. We believe that well-designed State aid schemes and measures can ensure that the EU meets its commitments under the Paris Agreement, and empower local authorities to accelerate their energy transition to support the EU in meeting these commitments.

State aid rules therefore have to:

  • Promote the financial investment and use of renewable energy, demand-response and energy efficiency;
  • Prevent the granting of aid that promotes carbon lock-in through investments in unsustainable projects and stranded assets;

Taking this into account, it is critical that:

  • A new set of Energy and Environmental Protection State aid Guidelines (EEAG) for after 2020, is aligned with the EU’s commitment to create a decarbonised, sustainable and Paris-proof energy market;
  • The new EEAG should also be fully aligned with the Clean Energy for all Europeans package, in particular as regards the provisions on citizen energy communities and renewable energy communities.

The new EEAG should facilitate the integration of small-scale operators and of non-conventional, decentralised business models such as citizen /renewable energy communities. The exemption rules laid down under paragraphs 125 and 127 EEAG were, and remain, necessary for ensuring deployment of these indispensable market operators. However, as these stakeholders are still deploying and as many face barriers for integrating into concentrated energy markets dominated by incumbents, the level of thresholds should be adapted (increased, and in any case certainly not lowered) so as not to hinder those market operators that are exceeding the thresholds, but are still too small to effectively bid in competitive processes (e.g. auctions), from receiving support.
Special conditions for citizen/renewable energy communities will enhance the deployment of this business model and contribute to the objective to empower citizens pursued by the Clean Energy for all Europeans package.

Read our full response to the public consultation in the attached policy document:

About

Authors

David Donnerer

Publication date

19/07/2019

Related legislative initiative

EU State Aid Framework

Download & share

Energy Cities' response

EU taking big step forward toward energy democracy

The agreement makes it easier for European citizens to set up their own renewable energy projects

Early this morning the European Parliament and the European Council reached an agreement on the Renewable Energy Directive: by 2030 the EU will have to […]

Response to the New Energy Market Design Consultation

In July, the European Commission launched a public consultation process on the new energy market design

Energy Cities responded to the European Commission consultation on the new Energy Market Design, running until the end of October 2015. In our view, the new energy market design should ensure equal treatment and non-discrimination for all market players, be it private companies or energy citizens.

Our 5 key demands on the next EU electricity market legislation

The legislation must set strong rules to acknowledge, enable and provide rights to energy citizens and communities

The European Commission, the Parliament and the Council are currently negotiating the future electricity market of the European Union. Together with Rescoop and Friends of the Earth Europe, we published a position paper expressing our key demands on the next EU energy market legislation.