EC's leaked 2030 renewables target undersells green power potential: SolarPower Europe

A target share of 38-40% renewables in the EU's final energy demand by 2030 undersells renewables' ability to decarbonize the bloc's energy at least cost, trade body SolarPower Europe told S&P Global Platts July 13.

The European Commission is set to unveil a package of climate proposals on July 14, including a revised target for renewables to support a 55% cut in carbon emissions by 2030.

Leaked documents show the EC proposing a 38-40% share for renewables in final energy demand by then, up from 32% in current legislation.

"This is not enough to capitalize on the full potential of renewables, particular solar, to contribute to carbon neutrality," said SolarPower Europe's policy expert Miguel Herrero.

"We hope the EC goes for the top end of the target – a lot of the additional capacities are happening regardless, but they are not enough to get on the most cost-efficient track," he said.

The EU27 had 137 GW of solar PV installed as of end-2020, with 19 GW added last year. Member states' energy plans aim for 335 GW solar by 2030.

The association is calling for a 45% target, with EU solar capacity rising to 870 GW by 2030.

A 38% target could be met mainly by deploying solar on rooftops, which had fewer permitting issues than large-scale ground-based projects, Herrero said.

"As soon as you go beyond 40%, you start meeting that additional ambition through large-scale solar," with permitting barriers becoming a material issue, he said.

It was positive, then, that the EC was proposing to introduce a review clause in the Renewable Energy Directive (RED), empowering the executive to act if member states took insufficient measures to streamline permit procedures by end-2023, the deadline for the first reporting period under National Energy and Climate Plans.

Under the proposal, the EC would be empowered by end-2024 to propose a targeted revision of the directive's permitting articles 15, 16 and 17, Herrero said.

"But really the most urgent thing is to have best practice guidelines and indicators [from the EC] to help member states implement these provisions [in the directive]," he said, noting a critical lack of data at national level on permitting procedures, outcomes and administrative resource.

Other positive developments in draft proposals included removal of member states' right to withhold issuance of Guarantees of Origin to renewable producers receiving financial support, and a requirement for more proactive support of Power Purchase Agreements, including use of credit guarantees to reduce financial risk, Herrero said.

Finally on renewable renewable fuels of non-biological origin (RFNBOs), including renewable hydrogen, the EC's draft definition in the directive "clearly specifies the fuels must be from renewable sources, giving us sufficient reassurance they are only going to promote renewable fuels through the RED directive," Herrero said.

The devil was in the detail, however, with the phrase "only from renewable sources" yet to be fully defined within a Delegated Act, a draft of which is expected after the summer.