[ParlTrack]

Jens GEIER, Marek Paweł BALT, Dan NICA, Matthias ECKE

Proposal for a regulation
Recital 11 a (new)

(11a) In a transitional period, the electricity market will not be able to deliver the price levels required for the affordable electrification of the Union’s industry, which is indispensable for the achievement of the Union’s decarbonisation targets. Member States should, therefore, be allowed to apply public interventions in the price setting for the supply of energy-intensive industry sectors under competitive pressure on the international markets requiring electricity to decarbonise their production. Such targeted interventions can also take the form of direct support measures in line with the Guidelines on State aid for climate, environmental protection ensuring internationally competitive price levels on electricity.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Dan NICA, Matthias ECKE

Proposal for a regulation
Recital 17

(17) In order to be able to actively participate in the electricity markets and to provide their flexibility, consumers are progressively equipped with smart metering systems. ~~However, i~~Consumers shall also have the right to receive a dedicated metering device, independently from being already equipped with a smart metering system. In a number of Member States the roll-out of smart metering systems is still slow. In those instances where smart metering systems are not yet installed and in instances where smart metering systems do not provide for the sufficient level of data granularity, transmission and distribution system operators should ~~be able to~~ use data from dedicated metering devices for the observability and settlement of flexibility services such as demand response and energy storage. Enabling the use of data from dedicated metering devices for observability and settlement should facilitate the active participation of the consumers in the market and the development of their demand response. The use of data from these dedicated metering devices should be accompanied by quality requirements relating to the data.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Recital 27

(27) In this framework, Member States should strive to create the right market conditions for long-term market-based instruments, such as renewable energy purchase agreements and power purchase agreements (‘PPAs’). PPAs are bilateral purchase agreements between producers and buyers of electricity. They provide long-term price stability for the customer and the necessary certainty for the producer to take the investment decision. Nevertheless, only a handful of Member States have active ~~PPA markets and buyers are typically limited to large companies, not least because~~renewable energy purchase agreement and PPA markets, not least because renewable energy purchase agreements and PPAs face a set of barriers, in particular the difficulty to cover the risk of payment default from the buyer in these long-term agreements. The risks can lead to excessively high collateral requirement for the buyer, in particular for early projects in the hard-to- decarbonise sectors. Member States should take into consideration the need to create a dynamic renewable energy purchase agreement and PPA market when setting the policies to achieve the energy decarbonisation objectives set out in their integrated national energy and climate plans.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Recital 28

(28) According to Article 15(8) of Directive (EU) 2018/2001 of the European Parliament and of the Council, Member States are to assess the regulatory and administrative barriers to long-term renewable energy purchase agreements and renewables PPAs, and shall remove unjustified barriers to, and promote the uptake of, such agreements. In addition, Member States are to describe policies and measures facilitating the uptake of renewable energy purchase agreements and renewables PPAs in their integrated national energy and climate plans. Without prejudice to that obligation to report on the regulatory context affecting the PPA market, Member States should ensure that instruments to reduce the financial risks associated to the buyer defaulting on its long-term payment obligations in the framework of renewable energy purchase agreements and PPAs are accessible to companies that face entry barriers to the renewable energy purchase agreement and PPA market and are not in financial difficulty in line with Articles 107 and 108 TFEU. Member States could decide to set up a guarantee scheme at market prices. Member States should include provisions to avoid lowering the liquidity in the electricity markets, such as by using financial PPAs. Member States should not provide support to PPAs that purchase generation from fossil fuels. While the default approach should be non- discrimination between consumers, Member States could decide to target these instruments to specific categories of consumers, applying objective and non- discriminatory criteria. In this framework, Member States should take into account the potential role of instruments provided at Union level, for instance by the European Investment Bank (‘EIB’).

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Recital 29

(29) Member States have at their disposal several instruments to support the development of renewable energy purchase agreement and PPA markets when designing and allocating public support. Allowing renewable energy project developers participating in a public support tender to reserve a share of the generation for sale through a renewable energy purchase agreement or PPA would contribute to nurture and grow renewable energy purchase agreement and PPA markets. In addition, as part of these tender evaluation Member States should endeavour to apply criteria to incentivise the access to the renewable energy purchase agreement and PPA market for actors that face entry barriers, such as small and medium-sized enterprises (‘SMEs’) or energy-intensive large companies that face tremendous challenges to decarbonise their production , giving preference to bidders presenting a commitment to sign a renewable energy purchase agreement or PPA for part of the project’s generation from one or several potential buyers that face difficulties to access the renewable energy purchase agreement and PPA market.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Recital 30

(30) ~~Where~~ Member States ~~decide to~~shall support publicly financed new investments (“direct price support schemes”) in low carbon, non-fossil fuel electricity generation to achieve the Union’s decarbonisation objectives~~, t~~. Those schemes should be structured by way of two-way contracts for difference such as to include, in addition to a revenue guarantee, an upward limitation of the market revenues of the generation assets concerned. Different sources of power generation should be pooled. New investments for the generation of electricity should include investments in new power generating facilities, investments aimed at repowering existing power generating facilities, investments aimed at extending existing power generating facilities or at prolonging their lifetime.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Recital 33

(33) In view of the need to provide regulatory certainty of producers, the obligation for Member States to apply direct price support schemes for the production of electricity in the form of two-way contracts for difference should apply only to new investments for the generation of electricity from the sources specified in the recital above. Member States should support the integration of the European electricity market by realizing the benefits of long-term hedging for investors and consumers at European scale with joint tenders for CfDs by groups of countries backed by allocation of long-term (financial) transmission rights to ensure these CfDs translate to effective hedging for electricity consumers in participating countries.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Dan NICA, Matthias ECKE

Proposal for a regulation
Recital 34

(34) Thanks to the upward limitation of the market revenues direct price support schemes in the form of two-way contracts for difference should provide an additional source of revenues for Member States in periods of high energy prices. To further mitigate the impact of high electricity prices on the energy bills of consumers, Member States should ensure that the revenues collected from producers subject to direct price support schemes in the form of two-way contracts for difference are passed on ~~to all final electricity customers, including households, SMEs and industrial consumers, based on their consumption~~in particular to energy-intensive industry sectors under competitive pressure on the international markets in proportion to their dependency on international markets and their electro- intensity and those industries indispensable for the transformation to climate-neutrality. Annex I of the Guidelines on State aid for climate, environmental protection should give guidance for passing on the revenues . The redistribution of revenues should be done in a way that ensures that consumers are still to some extent exposed to the price signal, so that they reduce their consumption when the prices are high, or shift it to periods of lower prices (which are typically periods with a higher share of RES production). Member States should ensure that the level playing-field and competition between the different suppliers is not affected by the redistribution of revenues to the final electricity consumers.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Dan NICA, Matthias ECKE

Proposal for a regulation
Recital 36 a (new)

(36a) High electricity prices have impacted particularly energy-intensive industries and SMEs with high trade and electricity intensity at a significant risk of carbon leakage. This is due to increased production and manufacturing costs stemming from the surges in wholesale prices. The Union has to ensure reliable electricity prices to affordable cost for the European energy-intensive sectors under competitive pressure on the international markets in order to prevent job losses, to enable the industrial transition towards climate-neutrality and to protect European sovereignty. Complementary to two-way contracts for difference and PPAs, Member States may support those sectors by the introduction of public interventions in price setting in a transitional phase where not enough non- fossil fuel electricity generation is deployed yet. The support should end in 2035 at the latest. Those financial support measures shall enable the decarbonisation of electro-intensive production processes. Companies that receive financial support have to comply with a transformation plan and minimum social commitments. The support shall be in proportion to the dependency on international markets and the electro- intensity of the production as well as incentivise energy efficient energy use by companies, for example through a limitation of the intervention to a share of the total electricity consumption.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) 2019/943
Article 2 – point 77 a (new)

(77a) 'renewable energy purchase agreement’ as defined in Article 2(2), point (14p) under amending Directive 2018/2001 [2021/0218(COD) (RED III)];

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/943
Article 7b

1. “Member States shall ~~allow~~require transmission system operators and distribution system operators to use data from dedicated metering devices for the observability and settlement of demand response and flexibility services, including from storage systems on the same grounds as data generated by smart meters.

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) 2019/943
Article 7b

2. Member States shall establish requirements for a dedicated metering device data validation process to check and ensure the quality of the respective data. Access to data from dedicated metering devices shall be granted in compliance with provisions included in article 23 of Directive (EU) 2019/944. National regulatory authorities shall assess the costs linked to the roll-out of dedicated metering devices and define cost-reflective tariffs for allocating these devices to consumers.’;

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE

Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point b

Regulation (EU) 2019/943
Article 19 – paragraph 2

(c) compensating offshore renewable electricity generation plant operators in an offshore bidding zone if access of offshore renewable electricity generation to interconnected markets has been reduced in such a way that one or more transmission system operators have not made ~~enough capacity available on the interconnector or~~available the capacity agreed as part of the offshore renewable electricity tender on the interconnector or have not made available the capacity on the critical network elements ~~affecting~~pursuant to the capacity ~~of the interconnector~~calculation rules according to Art. 16 para 8 of Regulation (EU) 2019/943, resulting in the offshore renewable electricity plant operator not being able to export its electricity generation capability to the market. and in lower market prices in the offshore bidding zone. The compensation shall be limited to reduced revenues of offshore wind electricity generation plant operators due to such reduction of access to interconnected markets and shall be financed from excess revenues resulting from the allocation of cross-zonal capacity due to such reduction of access to interconnected markets.’

2023/05/25
Committee: ITRE

Jens GEIER, Marek Paweł BALT, Matthias ECKE