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21 May 2024

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EU Issues New Recommendation to Enhance Renewable Energy Auction Design

The European Commission has published Recommendation (EU) 2024/1344, which focuses on improving the design of renewable energy auctions. This is in line with the EU's decarbonisation objectives and aims to reduce greenhouse gas emissions, which account for over 75% of the Union's total emissions.

In 2022, renewables such as wind and solar accounted for 23% of the electricity mix, a growth facilitated by auctions organised by Member States. These auctions often include state aid, allowing for competitive allocation of public support to renewable projects.

The Recommendation notably refers to Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources, the need for transparent criteria in tendering procedures and the importance of long-term planning of support allocations, updated annually.

In addition, the Recommendation suggests the inclusion of non-price criteria in auctions to achieve broader objectives beyond cost-efficiency, such as environmental and social standards, supply chain resilience and energy system integration.

For further information, see the Official Publication.