How the next European Commission could secure clean and affordable energy for all

The climate crisis and energy price explosion have made it clear: the EU cannot afford its dependency on fossil fuels anymore. How to deal with these enormous challenges? Our NEW 100% Renewable Energy Action Plan for the next European Commission 2024-2029 describes what needs to happen after the 2024 European elections to harvest the benefits of renewables.

Parts of the next European Commission’s agenda are already set, such as the EU need to agree on a new 2040 climate target. Both the Paris Agreement and the European Climate Law require this soon. But in spite of the fossil energy price crisis, EU Member States are loath to engage in another target debate. This is even more worrying because the current objectives under the ‘Fit for 55’ package are not fully in line with the Paris Agreement’s objectives.

So can we unite the EU through energy policies again? Remember that the project started in 1950 with the European Coal and Steel Community, followed by the (still valid) EURATOM treaty of 1957. There are of course less divisive energy sources to get the European integration on energy more alive and kicking. Even conservative scenarios stress that during the next legislative term, the rapid growth of renewable energy capacities will be the most crucial trend, be it with or without an ambitious new 2040 target. Besides the rising costs of the climate crisis, Member States will in any case not be able to dampen the next fossil fuel price explosion again with a huge pillow stuffed with billions of subsidies for those fuels that we actually wanted to remove from our energy mix.

A fully renewable energy supply might sound utopian but is the most pragmatic way forward in relation to the challenges of the climate crisis and our bills. While the geopolitics of fossil fuel imports and nuclear energy only spark discord, European governments and institutions can unite behind abundant renewables to share their many indisputable benefits.

The 100% Renewable Energy Action Plan for the next European Commission:

1. Describes how to accelerate the growth of renewables.
2. Details how energy system flexibility and infrastructure should be prepared.
3. Suggests enabling local authorities that will have to manage the roll-out of renewables and energy savings on the spot.

The Heinrich-Böll-Stiftung European Union and Environmental Action Germany (Deutsche Umwelthilfe) developed the Action Plan during 2023, working with a group of 25 experts from EU institutions and local authorities, the renewables industry and environmental NGOs. The key finding: the many welcomed legislative improvements of the departing European Commission require a consistent continuation to ensure the EU’s energy security and finally live up to addressing the climate emergency.

1. Accelerate the growth of renewables

Delayed and incomplete National Energy and Climate Plans show that this joint exercise for defining national contributions to EU climate and energy targets is not functioning well. The process would become more effective with binding targets, as we know from the EU pathway towards previous 2020 targets. Binding targets would give greater clarity and planning security to investors. They would also help mobilizing the necessary investments.

The quick multiplication of EU renewable energy capacities will only work out with strong domestic manufacturing capacities, supported by a Renewable Energy Investment Plan. Auctioning schemes for wind turbines should integrate strong non-price criteria based on social and ecological justice to preserve the competitiveness of the European wind industry.

The next European Commission should also update the EU Solar Energy Strategy to mobilize the underused solar photovoltaics (PV) potentials, particularly in urban areas. Solar rooftop obligations for new residential buildings and roofed car parks should be advanced to 2027. When it comes to the existing building stock, the European Commission should do two things in parallel, namely develop guidance on adequate support for low-income homeowners and introduce a solar mandate in the case of rooftop renovations. An EU rooftop registry, as well as an Action Plan for plug-in mini solar PV on the balconies of European houses, can further accelerate the roll-out of affordable solar electricity to those most in need.

Check out our web dossier "The road to the 2024 European Parliament elections", featuring insights from the Heinrich-Böll-Stiftung's offices and partners on the 2024 European Parliament elections, the next EU legislative term, and the "super election" year 2024 ✅🗳️🇪🇺

2. Put in place the right infrastructure and flexibility for 100% renewables

If the EU succeeds in increasing its renewable energy capacities, there is still the problem that electricity grids are not sufficiently prepared. The Action Plan suggests considering the potential shift to Independent System Operators models. Although electricity and gas operators have made progress towards a future renewable energy system, they are still for-profit entities that earn rents on those networks that they are responsible for planning. Such a conflict of interest undermines any independent optimisation of energy infrastructure planning.

Just building more pipes and pylons potentially locks the EU into path dependencies – or leads to stranded assets. Energy consumers, suppliers and infrastructure will all need to interact more smoothly. Consumers, be it households with electric heat pumps, electric vehicles or big factories, need stronger incentives to use the existing energy networks in a more flexible way. Slight behavioural changes in the time of consumption already prevent congestion and reduce the overall costs.

EU legislation already provides an appropriate framework for such market-based flexibility schemes. But Member States fail to implement these reforms. The European Commission should now consider infringement procedures to push national governments that still hinder their consumers to benefit from demand side flexibility.

This can also happen through network tariffs that all consumers have to pay. The European Commission should therefore provide guidance on how to make network tariffs fair and flexible. While targeting the most important loads, guidance from the EU level needs to ensure low-income households that often consume comparatively little energy do not pay disproportionately more.

3. Enable local authorities to manage the transition to 100% renewables

Social acceptance of the EU energy transition depends on democratic legitimacy. The closer and more transparent this becomes, the better. Renewable technologies and energy savings need to be rolled out locally, but local authorities lack staff and money. At the occasion of preparing the next Multiannual Financial Framework, widening the Just Transition Fund to all regions that want to engage with it would allow local authorities to kick-start the necessary investments in their local energy transition.

Successful local initiatives will need to share their excess renewable potential effectively with other less advantaged regions. Interregional cooperation should thus get more funding through instruments such as the Renewable Energy Partnerships and Interregional Innovation Investments under the European Regional Development Fund.

Last but not least, ramping up the financing available to local authorities through the Energy Communities Facility can unlock billions of euros in investments from European citizens, besides also boosting local value added in the form of tax income, employment and profits of local companies.

From European Coal and Steel Community and EURATOM to EURENEW?

Seventy-five years after coal being the cornerstone of European integration, the European Commission should focus on an ambitious strategy for mobilising our shared European renewable energy sources. This bears the biggest potential for bringing together European governments and institutions in the conflictual area of energy politics. There is so much to be gained for all Europeans.