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The following are the main directives that have been brought out with a short definition:

Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market.

The member states have to report to the EU every two years in order for the EU to gage where they are as regard to their renewable energy targets for 2010. It also monitors the different types of renewable energy ensuring that there is no bias towards certain types. (European Union 2001)

The following are proposed directives that could affect the renewable energy sector within the EU:

Proposal for a Decision of the European Parliament and of the Council adopting a multi-annual program for action in the field of energy: "Intelligent Energy for Europe" Program (2003-2006).

This directive would be to improve the amount of renewable energy sources that are being used in the community on a small scale level. In particular reference to wind energy, hydro power, biomass, and solar thermal applications, these are all said to be economically viable and competitive. This is to coincide with the strategy of increasing the renewable energy usage in the EU from the present 6% to the 2010 objective of 12%. (European Union 2002)

Opinion of the Committee of the Regions on the Proposal for a Council Decision concerning the approval, on behalf of the European Community, of the Kyoto Protocol to the United Nations Framework Convention on Climate Change and the joint fulfilment of commitments hereunder.

This proposal is that the member states shall report back on the progress that they are making at reducing CO2 levels. (European Union 2002)

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The following is a breakown of current energy events happening in the UK at the moment. The info has been quoted from the Cameron McKenna "LawNow" newsletter. Further information on this can be found at www.law-now.com;

 

Following its  Energy Review Report in July, the Government issued on 9 October a Consultation on the Reform of the Renewables Obligation . Investors in renewables, including microgeneration, need to be aware of the proposed changes and the potential impact on their investment. You can also seek to influence the outcome by responding to the Consultation.

The Consultation has two parts. The first deals with major changes to the Renewables Obligation, such as the introduction of a banding system and is open until 5 January 2007. The second part, which is open until 15 December 2006, deals with a set of more limited changes to the Renewables Obligation Order, mainly aimed at helping microgenerators.

Part 1 of the consultation

The Government's key proposals in Part 1 of the Consultation are to:

  • introduce a banding system in the Renewables Obligation, whereby projects using emerging technologies, such as offshore wind and photovoltaics, would receive more Renewable Obligation Certificates (ROCs) per MWh of electricity produced than projects using more standard technologies, such as onshore wind. Such projects may receive only a percentage of a ROC per MWh.
  • adopt a "grandfathering" approach in respect of projects using more established technologies. Grandfathered projects would continue to receive a minimum of one ROC per MWh if they become operational prior to the introduction of the banding system.
  • raise the maximum level of the Renewables Obligation from its current limit of 15.4% of electricity generated as from 2015/16 to 20%, subject to controls.

Part 2 of the consultation

The key proposals in Part 2 of the Consultation are to:

  • make the benefits of the RO more accessible to microgenerators (generating units smaller than 50 kilowatts) by allowing agents to carry out the procedures for Ofgem accreditation and claiming ROCs and to amalgamate generation.
  • remove the need for generators who wish to claim ROCs to enter into sale and buyback agreements with suppliers.

 

Energy Consultation: Nuclear, Carbon Emissions and Security Of Supply:

The Government has published a new consultation paper titled ‘Our Energy Challenge: Securing clean, affordable energy for the long term’. The consultation has a broad scope and in general will consider progress towards the goals set out in the 2003 Energy White Paper, ‘Our energy future – creating a low carbon economy’ and matters that were left open at the time.

Key areas that the consultation will consider, include:

Issues relating to the option of new nuclear build, and how to address these if a new generation of nuclear power stations replaces those currently in the process of being de-commissioned, such as the long-term liabilities and dealing with radioactive waste.
How to meet the UK’s carbon emission reduction commitments and any particular considerations relating to low-carbon technologies e.g. carbon abatement.
Action required to ensure security of energy supplies in the UK, in the context of the heightened uncertainties relating to global energy supplies, the shift to the UK becoming a net importer of energy, the need for investment in generation and transmission capacity over the next two decades and our ‘increased dependence on gas imports’.
The Consultation Paper is part of the Energy Review announced by the Prime Minister at a Confederation of British Industry conference in London on November 29 last year and is headed by the Energy Minister, Malcolm Wicks. It comes in advance of the ‘Policy Statement’ on the Energy Review, which is expected to be published by the Government this summer.

 

Major carbon sequestration scheme announced:

Shell and Norwegian oil company Statoil have agreed to work together on the world’s biggest carbon sequestration project. The proposed scheme would pump 2 to 2.5 million tonnes of carbon dioxide (CO2) produced by a 860 MW gas-fired power plant at Tjeldbergodden in Norway to two offshore oil and gas fields in the Norwegian section of the North Sea (at Draugen and Heidrun). The scheme, which is expected to commence in 2010, would also increase oil recovery in these two fields.

EC Green Paper published on European Energy Strategy:

The European Commission has published a Green Paper entitled ‘A European Strategy for Sustainable, Competitive and Secure Energy’. It contains concrete proposals to meet key objectives that should form the basis of Europe's energy policy: sustainability, competitiveness and security of supply.

The proposals include:

  • Further measures to complete the internal gas and electricity markets including consideration of a European Grid and European Grid Code, a European regulator and a European Centre for Energy Networks.
  • A ‘real’ Community-wide debate on the different energy sources (with regard to costs and contribution to climate change) and a call for arrangements, compatible with the Lisbon objectives on climate change issues.
  • Prioritising energy efficiency and implementing measures to achieve a target of a 20% energy saving by 2020.
  • Introduction of a “white certificates” trading system for energy efficiency.
  • A new Community Directive on heating and cooling.
  • A pan-European Energy Community Treaty, a new energy partnership with Russia and a rapid reaction process to deal with external energy emergencies.

The Green Paper is a consultative document and, following consultation on the proposals, may lead to legislative action in due course. The Paper raises some interesting points on the ways in which to settle the issues facing the EU energy sector and considers also the feasibility of some of the proposals put forward. It also raises some interesting issues as to the interrelationship of the proposals with the arrangements for the single market currently in place. If taken forward, the proposals are likely to give rise to opportunities for market participants in the EU and more widely.

Key developments this month include:

 

  • DEFRA launched a consultation on the new Waste Framework Directive on 27 th October 2006.  It does not, however, include revisions by the European Parliament and Council of Ministers which are currently being negotiated. Much of the debate centres over the EU's waste hierarchy.  All comments and views on the consultation document should be submitted to DEFRA by 5 January 2007.
  • October was quite a month for climate change discussion and announcements.  Press coverage over “green taxation” culminated on 30 October in the release of the Stern Review on the Economics of Climate Change and a Government commitment to new legislation to deal with climate change.  The new legislation is not imminent – there will be widespread consultation and it will be introduced “when parliamentary time allows.” In addition, the Government released a “Vision Statement” on the future of the EU ETS suggesting strongly that emissions trading is its preferred instrument for pricing carbon.  These developments send a strong message that “Business as Usual” will no longer be an option for the UK.
  • Indications from DEFRA are that the first consultation on the Environmental Liability Directive will take place in November.
  • The REACH chemical regulation is still under debate in the European Parliament.  Compromise talks took place in October, however, no agreement was reached and MEPs and the European Parliament continue to disagree over the authorisations process.  The Finnish Presidency is committed to finalising REACH before the year-end, however, it seems increasingly likely that the conciliation process will take place which will ultimately delay the process.
  • The DTI WEEE consultation closed on 17 th October. This consultation was the final stage in the process before regulations implementing the WEEE directive are introduced.  Regulations are still expected to be introduced late December 2006 to come into effect in January 2007.
  • On October 2006 the government announced plans for the long term management of higher activity radioactive waste.  This waste includes waste from nuclear, medical, military and academic institutions.  The plans mean placing this type of waste in deep underground facilities where natural geological structures will prevent the escape of radiation.
  • The Companies Bill continues to be amended and on 23 rd October 2006 it reached the House of Lords where it was changed further. Discussions about environmental provisions to be required in Director's report are ongoing with the current proposal being a requirement that the report contains information detailing the impact of the business on the environment. The Bill is due to receive Royal assent shortly although most of provisions are not expected to come into force until October 2008.