Pierre Loaëc, DG Energy, European Commission

1. Verkhovna Rada, 21 February 2019
Pierre Loaëc
DG Energy, European Commission
Tenders for renewables in the EU

2. EU has moved to tenders for RES support
2
Transitional phase 2015-
2016
From 2017
Competitive bidding
for at least 5%
of the planned
RES capacity.
Competitive bidding for
100% of the planned
RES capacity
Open to all RES generators
and technologies
Exemptions from bidding and tech
competition possible

3. Why do we like tenders?
3
1. Market-based price
discovery
2. Budget capping / planning
3. Self-regulating phase-out
mechanism
= avoid over- or under-
compensation
= avoid uncontrolled
open-ended support
= no need to define
mature vs non-mature

4. 0
1
2
3
4
5
6
7
8
9
10
Ct/kWh
Gebotstermin
Durchschnittliche
Zuschlagwerte PV-
Freiflächen
Fördersatz EEG2014
Average bid for PV
(on the ground)
Support level in
EEG 2014
Example of solar PV support since introduction of tenders in Germany
Date of auction
Decline in support costs

5. 5
Example of offshore wind in Netherlands, Germany and Denmark
Decline in support costs

6. Why avoid over-compensation?
6
For governments: reduce RES support cost for taxpayer / consumer

7. Why avoid over-compensation?
7
For investors: ensure sustainability of support schemes!

8. Thank you!