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Retrospective Evaluation Support Study on State Aid Rules for Environmental Protection and Energy

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Retrospective Evaluation Support Study on State Aid Rules for Environmental Protection and Energy Retrospective evaluation support study on State aid rules for environmental protection and energy Final Report Prepared by Competition EUROPEAN COMMISSION Directorate-General for Competition E-mail: [email protected] European Commission B-1049 Brussels [Catalogue number] [Catalogue Retrospective evaluation support study on State aid rules for environmental protection and energy Retrospective evaluation support study on the EU Guidelines on State aid for environmental protection and energy applicable in 2014-2020 and the provisions applicable to aid for environmental protection and energy of the Commission Regulation (EU) 651/2014 Final report Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE The information and views set out in this report are those of the author(s) and do not necessarily reflect the official opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2020 Catalogue number: KD-02-20-327-EN-N ISBN 978-92-76-18710-3 doi: 10.2763/414004 © European Union, 2020 Reproduction is authorised provided the source is acknowledged. The reproduction of the artistic material contained therein is prohibited. Authors: • Ela Głowicka • Paula Mäkelä • Stefan Witte • David Deller • Sean Ennis • Bryn Enstone • George Snaith • Michael Hofmann • Robert Klotz In collaboration with Julien Blanquart, Catalina Chilaru (both Sheppard Mullin Richter & Hampton LLP), Linda Gratz, Elias Schmidtlein (both E.CA Economics), Israel Gottschalk, Thanh Doan and Silvi Berger (all Centre for Competition Policy, University of East Anglia). TABLE OF CONTENTS 1 EXECUTIVE SUMMARY (EN) .................................................................................................... 13 2 SOMMAIRE ANALYTIQUE (FR) ................................................................................................ 18 3 ZUSAMMENFASSUNG (DE) ..................................................................................................... 24 4 INTRODUCTION ....................................................................................................................... 30 4.1 GENERAL OBJECTIVE OF THE EVALUATION SUPPORT STUDY ................................................................. 30 4.2 DESCRIPTION OF THE STUDY QUESTIONS .......................................................................................... 30 5 EFFECTIVENESS ....................................................................................................................... 35 5.1 BIDDING PROCESSES PROVIDING SUPPORT TO RES SCHEMES AND SCHEMES COVERED BY EEAG AND GBER TENDERING EXEMPTIONS ......................................................................................... 35 5.1.1 Introduction .................................................................................................... 35 5.1.2 Methodology .................................................................................................. 36 5.1.3 Results overview ............................................................................................. 37 5.1.4 Conclusions ..................................................................................................... 54 5.2 SUPPORT FOR HIGH EFFICIENCY COMBINED HEAT AND POWER (CHP) TECHNOLOGIES ............................ 55 5.2.1 Introduction .................................................................................................... 55 5.2.2 Methodology .................................................................................................. 56 5.2.3 Results overview ............................................................................................. 58 5.2.4 Conclusions ..................................................................................................... 65 5.3 CAPACITY MECHANISMS – AUCTION OUTCOMES AND SCHEME DESIGNS ................................................ 65 5.3.1 Introduction .................................................................................................... 65 5.3.2 Methodology .................................................................................................. 66 5.3.3 Results overview ............................................................................................. 66 5.3.4 Conclusions ..................................................................................................... 72 5.4 NEGATIVE PRICING ...................................................................................................................... 72 5.4.1 Introduction .................................................................................................... 72 5.4.2 Methodology .................................................................................................. 73 5.4.3 Results overview ............................................................................................. 74 5.4.4 Conclusions ..................................................................................................... 81 5.5 PROPORTION OF ELECTRICITY BILLS ACCOUNTED FOR BY RES CHARGES ................................................. 81 5.5.1 Introduction .................................................................................................... 81 5.5.2 Methodology .................................................................................................. 82 5.5.3 Results overview ............................................................................................. 84 5.5.4 Conclusions ..................................................................................................... 90 5.6 WASTE MANAGEMENT ................................................................................................................. 91 5.6.1 Review of waste management schemes ........................................................ 91 5.6.2 Stakeholder consultation ................................................................................ 94 5.6.3 Conclusions ................................................................................................... 102 6 EFFICIENCY ............................................................................................................................ 104 6.1 REDUCTIONS TO ENERGY INTENSIVE USERS ..................................................................................... 104 6.1.1 Relevant decisions ........................................................................................ 105 6.1.2 Data sources ................................................................................................. 106 6.1.3 Impact of reductions on the level of levies ................................................... 106 6.1.4 Conclusions ................................................................................................... 111 6.2 RELEVANCE OF GRANDFATHERING RULE ........................................................................................ 111 6.2.1 Identification of the grandfathered undertakings and sales data collection 111 6.2.2 Relevance of grandfathered undertakings ................................................... 114 6.2.3 Conclusions ................................................................................................... 118 6.3 FINANCIAL INSTRUMENTS FOR ENERGY EFFICIENCY .......................................................................... 118 6.3.1 Review of energy efficiency schemes ........................................................... 118 6.3.2 Stakeholder consultation on energy efficiency schemes .............................. 120 6.3.3 Conclusions ................................................................................................... 123 7 RELEVANCE ........................................................................................................................... 125 9 7.1 ZERO-SUBSIDY BIDS ................................................................................................................... 125 7.1.1 Introduction .................................................................................................. 125 7.1.2 Renewable energy auctions with zero subsidy bids ..................................... 127 7.1.3 Subsidy-free projects approved outside of an auction system ..................... 134 7.1.4 Conclusions ................................................................................................... 134 7.2 ALTERNATIVE FUEL INFRASTRUCTURE ............................................................................................ 135 7.2.1 Assessment of implementation of schemes ................................................. 135 7.2.2 List of electric charging station projects ...................................................... 143 7.2.3 Electric charging station projects ................................................................. 143 7.2.4 Financing of projects .................................................................................... 150 7.2.5 Conclusions ..................................................................................................
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