13 Renewable energy progress report
| Committee's assessment
| Politically important |
| Committee's decision | Not cleared from scrutiny; further information requested; draw to the attention of Energy and Climate Change Committee
|
| Document details | Commission progress report on renewable energy
|
| Legal base | —
|
| Department | Energy and Climate Change
|
| Document numbers | (36935), 9964/15 + ADDs 1-2, COM(15) 293
|
Summary and Committee's conclusions
13.1 In order to support the development and integration of renewable
energy, Directive 2009/28/EC sets a legally binding target whereby
the EU as a whole must ensure that 20% of its final energy consumption
by 2020 comes from renewable sources, with a sub-target of 10%
for renewable energy use in transport. In parallel with this,
each Member State has its own overall target — which, for
the UK, is 15% — whilst all Member States have the same
(10%) sub-target for transport. Progress is measured by interim
(two-yearly) targets, which become steeper in the approach to
2020, and the Directive requires the Commission to produce a mid-term
report on the EU's progress.
13.2 This document sets out the position on the basis
of reports submitted by Member States to the Commission in 2013,
and says that, overall, renewables are projected in 2014 to account
for 15.3% of gross final energy consumption, with the EU and an
overwhelming majority of Member States advancing well towards
their 2020 target, although it cautions that, as the trajectory
becomes steeper, some Member States (including the UK) may need
to intensify their efforts, or reassess their policy tools, in
order to keep on track. The Commission also comments in more detail
on the three areas identified in the Directive — electricity,
heating and cooling, and transport — noting that progress
has been slowest on the last of these.
13.3 Given the important role which EU energy
policies give to renewables, this is clearly a document of some
interest, which we think it right to draw to the attention of
the House. In doing so, we note that, notwithstanding certain
qualifications (notably as regards transport), the Commission
takes a reasonably optimistic view of the EU as a whole meeting
its overall targets, and that it believes that a majority of Member
States are on course to do so as well.
13.4 At the same time, the Commission has identified
the UK as one of the Member States which may need to assess whether
existing policy tools are sufficient to enable them to meet their
renewable energy objectives. As we have commented, the Minister
of State at the Department for Energy and Climate Change (Andrea
Leadsom), has made no reference to this in her Explanatory Memorandum,
and indeed has provided figures which suggest that, at least so
far as 2013-14 is concerned, the UK is likely to exceed its interim
target. Whilst this assessment is not necessarily incompatible
with the observations made by the Commission, there is clearly
scope for confusion, and it would be helpful therefore if the
Minister could indicate whether she believes the UK is likely
to meet its 2020 targets (and in particular whether she agrees
with the Commission's observations).
13.5 In the meantime, we hold the document under
scrutiny, and draw it to the attention of the Energy and Climate
Change Committee.
Full
details of the documents:
Commission Report: Renewable energy progress report: (36935),
9964/15 + ADDs 1-2, COM(15) 293.
Background
13.6 According to the Commission, renewable energy
is an essential element in the fundamental transformation needed
to achieve the Energy Union, and it notes that a comprehensive
policy framework to support the development and integration of
renewables, based on quantified targets, regulatory clarity and
market based investment, is contained in Directive 2009/28/EC.
In particular, this sets a legally binding target whereby the
EU as a whole must ensure that 20% of its final energy consumption
by 2020 must come from renewable sources, with a sub-target of
10% for renewable energy use in transport. In parallel with this,
each Member State has its own overall target — which, for
the UK, is 15% — whilst all Member States have the same
(10%) sub-target for transport. The Directive also distinguishes
between consumption of electricity (which accounts for 24% of
overall EU energy use), that for heating and cooling (which accounts
for 46%), and that for transport (which accounts for the remaining
30%).
13.7 Member States can meet their targets either
through domestic policies providing incentives to renewable energy
generation; by physical trading (such as partnerships with another
Member States on projects generating renewable energy); and by
statistical trading (whereby a Member State can purchase "credits"
from another Member State which has surpassed its target). Progress
is measured by interim (two-yearly) targets, which become steeper
in the approach to 2020, and, along with other Member States,
the UK outlined its plans to meet its target in a National Renewable
Energy Action Plan, which was submitted to the Commission in 2010.
The current document
13.8 The Directive requires the Commission to produce
a mid-term report on the EU's progress towards meeting its 2020
goal, and this document sets out the position on the basis of
reports submitted by Member States to the Commission in 2013.
13.9 The Commission says that, overall, renewables
are projected in 2014 to account for 15.3% of gross final energy
consumption, and that the EU and an overwhelming majority of Member
States are advancing well towards their 2020 target (although
it suggests that in part this is due to decreases in overall energy
consumption in recent years). It also cautions that, as the trajectory
becomes steeper, some Member States may need to intensify their
efforts to keep on track (and, where necessary, make use of cooperation
mechanisms with others): and it suggests that some Member States
— including France, Luxembourg, Malta, the Netherlands and
the UK — may need to assess whether policy tools are sufficient
and effective in meeting their renewable energy objectives. However,
it stresses that this assessment is based on modelling and only
take account of policy measures implemented by the end of 2013,
with some Member States having in the meantime taken decisions
which, if implemented in a timely manner, would deliver the necessary
outcome by 2020.
13.10 As regards the three individual areas, it comments
that the share of renewable energy in the heating and cooling
sector was estimated to be 16.6% in 2014, and that it is increasingly
being used as a cost-efficient alternative to fossil fuels in
district heating and at local level; and that about 26% of the
EU's power is generated from renewables (including about 10% sourced
from variable renewable energy, such as wind and solar). However,
it says that in the transport sector — where the bulk of
renewable energy is still expected to come from biofuels —
progress towards the 10% target has been slow, with a projection
for 2014 of only 5.7%, this being due to slow progress in road
vehicle and rail electrification, to the uncertainty caused by
a delay in finalising the means of limiting the risks of indirect
land-use change[ 152]
increasing emissions levels, and to insufficient progress in the
deployment of alternative, second generation biofuels.
13.11 The Commission comments that, despite the steady
progress made until now, achieving the 2020 targets is still largely
dependent on continuity of current policies, and additional measures
enabling the deployment of renewable energy: and it suggests that,
for some Member States, this will require cooperation with others,
whilst Member States will also need to address non-cost barriers,
including planning, administrative and authorisation procedures,
and to facilitate market access for new entrants, in particular
small and medium-sized enterprises. It notes that there has been
some progress in these areas, including the introduction of a
one-stop-shop system for project approvals, on-line information
platforms, and improved cooperation between involved authorities.
It also notes that the UK has introduced a 12 month time limit
for planning permits (including time for appeals).
13.12 Finally, the Commission notes that, as part
of its Regulatory Fitness (REFIT) programme, a review of the Renewable
Energy Directive was carried out in 2014, which concluded that
the setting of binding national targets had been successful, not
least in increasing transparency for investors, improving the
quality of information about renewable energy markets, and achieving
the EU's energy and climate policy goals, security of supply,
employment, public acceptance and regional development. In addition,
it says that the targets have avoided emissions of around 388
million tonnes of carbon dioxide in 2013, and have reduced EU
demand for fossil fuels, reduced inland consumption of natural
gas by at least 7% in almost half of Member States, and avoided
at least €30 billion (£25.5 billion) a year on imported
fuel costs.
The Government's view
13.13 In her Explanatory Memorandum of 2 July 2015,
the Minister says that although there are no policy issues arising
directly from this report, her department continues to monitor
progress against the 2020 renewables target, and will report on
progress against the interim targets. In the meantime, she comments
that, overall, the UK met its first interim target of 4.1% for
2011-12, and, with provisional figures showing that 6.3% of energy
consumption came from renewables in 2013-14, is on track to meet
the target of 5.4% for that year; that it is among the 21 Member
States which have met the deployment trajectory for renewable
heating and cooling, and that it is also among the 16 Member States
which were above their indicative trajectory for renewable electricity
use in 2013. She does not comment on Commission's observation
that the UK is one of the Member States which may need to assess
whether policy tools are sufficient and effective in meeting its
overall renewable energy objectives.
Previous Committee Reports
None.
152 This arises when, as a result of more agricultural
land being used to grow fuel crop rather than food, woodland is
used instead to grow food crops, thus releasing stored carbon. Back
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