The document discusses the key elements of an EU directive proposal on promoting renewable energy sources, including: - Targets of 20% renewable energy share in final energy consumption and 10% renewable share for transport by 2020. - National action plans for each member state to meet indicative targets. - Guarantees of origin to prove the renewable source of electricity, heating, cooling produced and consumed. - Support schemes like feed-in tariffs or obligations on power producers and consumers to promote renewable energy development and use. - Administrative procedures, regulations, and reporting requirements for member states to implement the directive.

1. May 08 Analysis of EU Directive proposal on the promotion of the use of energy from renewable sources Fernando Nuño European Copper Institute [email_address]

3. TARGETS and APPLICATION FIELDS 20% share of RE sources in final energy consumption* 10% share of biofuels ELECTRICITY* HEATING & COOLING* TRANSPORT NEW * Final energy consumption is calculated as the sum of electricity, heating & cooling and transport ( beyond 10% biofuels share )

4. Target SHARE among Member States Equal increase in each Member State's share weighted by their Gross Domestic Product Starting point : 2005 20% 10% share of BIOFUELS : same level for each Member State RENEWABLE ENERGY 8.5%

6. NATIONAL ACTION PLANS Each Member State shall adopt a NATIONAL ACTION PLAN 31 March 2010 Member States notify their NAP to the Commission Indicative Trajectory If fallen below, shall submit a new NAP

8. GUARANTEES OF ORIGIN Each Member State designates a Single Competent Body NATIONAL REGISTER Heating & Cooling : Plant capacity > 5 MWth Relate to the RE generated in a given calendar year. GoO are issued, at the latest, three months after the end of that year Issued on response to a request from a producer of RE Issues, records transfers and cancels GoO 1 MWh Issued, transferred and cancelled electronically

10. Mechanics of Guarantees Of Origin : 1 - ISSUING Single Competent Body NATIONAL REGISTER GoG RE installation having produced 1 MWh in a given calendar year RE Producer requests his GoO GoO is issued and registered in National Register for further use (either cancellation or transfer)

11. Mechanics of Guarantees Of Origin : 2 – a CANCELLING under a SUPPORT PROGRAM Single Competent Body NATIONAL REGISTER RE Producer submits his issued GoO GoO issued and registered in National Register related to a single producer Competent Body in charge of registering RE production related to SUPPORT PROGRAM RE Producer gets the support aid (feed-in tariff, premium payment…) GoO is cancelled from National Register where initially issued and submitted to the Support Program Competent Body The number of cancelled GoO will be used for accounting the RE share of the Member State GoG GoG

12. Mechanics of Guarantees Of Origin : 2 – b CANCELLING under an OBLIGATION SCHEME Single Competent Body NATIONAL REGISTER RE Producer sells his issued GoO GoO issued and registered in National Register related to a single producer Competent Body in charge of registering production to comply with OBLIGATION SCHEME Producer 2 complies with his obligation GoO is cancelled from National Register where initially issued and submitted to the Obligation Scheme Competent Body Producer 2 having to comply with xx% of RE share, buys the GoO to RE producer € € € Mechanism would be similar for Energy Suppliers or Energy Consumers subject to OBLIGATION GoG GoG

13. Mechanics of Guarantees Of Origin : 3 – TRANSFERING between Member States If RE share exceeds the indicative trajectory, GoO can be transferred to another Member State EX-POST Mechanism EX-ANTE Mechanism Member States may provide for a system of PRIOR AUTHORISATION for the transfer of GoO to or from persons in other Member States Has to be justified Energy Installations have to be operational after the date of entry of Directive GoO transfers can be accompanied by physical energy transfer or not The Commission will carry out an assessment of the implementation, costs and benefits by Dec 2014 Any intention has to be notified to the Commission, which will publish that information

22. Guiding technology mix (III) – Market based model SOLAR PV GoO Sale @ 26 c€/kWh WIND GoO Sale @ 3 c€/kWh Producer having to comply with xx% of RE share, has to buy GoO to RE producers… BIOGAS GoO Sale @ 11 c€/kWh