EBA and the renewable energy industry publish their position on the revision of priority dispatch regimes for renewables

Krišjānis Karins, member of the European Parliament (MEP), published in June 2017 its draft report on the revision of the Regulation on Internal Market for Electricity. As Rapporteur for this Regulation, he proposes crucial changes to the current dispatching regime for power generating installations using renewable energy sources. As the European Parliament (EP) still has to amend and vote the report within the Industry, Research and Energy (ITRE) committee, as well as in plenary session, EBA emphasises several major elements to be considered by MEPs when revising the text.

Applying market-based dispatch rules for all generation units down to the smallest, as proposed by the Rapporteur, would involve prohibitive technical and administrative burdens for households, small businesses and farmers. In EBA’s view, small actors and demonstrations projects must instead benefit from an electricity market framework providing certainty and stability, reducing the risks of investing in innovative projects.

Furthermore, MEPs have to take into consideration that electricity markets are evolving in different ways in Member States. The current priority dispatch and access are fundamental for investors who must cope with uncertainty in an electricity market not fit for renewables yet. A harmonised priority dispatch framework at EU level that ignores the specificities of the different European countries, is likely to stall the uptake of renewable power generation in countries where there has been little progress so far. Therefore, member states with low electric generation should have more leeway to grant priority dispatch to larger renewable installations as a transition measure to promote their renewable sectors.

Finally, it is essential that all renewable electricity projects keep the dispatching regime in place that was applicable when the investment was decided. Any retrospective changes could impact businesses negatively, as investors need legal certainty to commit to renewable energy projects in Europe. For this reason, EBA urges MEPs to maintain priority dispatch for all existing installations which were granted such right prior to the date of entry into force of the new Electricity Regulation.

More information here.