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New Renewable Energy Directive introduces significant changes in way projects are processed

European Union - 

We look at the main benefits for projects located in renewables acceleration areas or the permit-granting process, among other changes introduced by the recently enacted EU legislation that the Member States must incorporate into national law before May 21, 2025.

Directive 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive 2018/2001, Regulation 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources, and repealing Council Directive 2015/652 (the new Renewable Energy Directive) has been published in the Official Journal of the European Union. Member states have until May 21, 2025 to transpose it into national law.

The legal measures contained in the new Renewable Energy Directive seek to accelerate an energy policy based on improving energy efficiency and increasing the use of renewable energy, with the ultimate goal of achieving an energy system that is independent of third countries.

The main changes introduced by the new Renewable Energy Directive in the way projects are processed are described below:

New targets for energy from renewable sources

New renewable energy generation targets are introduced for member states, requiring them to: (i) ensure that the share of energy from renewable sources in the Union’s gross final consumption of energy in 2030 is at least 42.5%; (ii) endeavor to increase the share of energy from renewable sources in the Union’s gross final consumption of energy in 2030 to 45%; and (iii) set an indicative target for innovative renewable energy technology of at least 5% of newly installed renewable energy capacity by 2030.

Mapping of areas necessary for national contributions towards the Union renewable energy target for 2030

Taking into account the ambitious targets for 2030, the new Renewable Energy Directive establishes that by May 21, 2025, member states must carry out a coordinated mapping for the deployment of renewable energy in their territory to identify the domestic potential and the available land and sea areas that are required in order to meet at least their national contributions towards the overall Union renewable energy target for 2030. To this end, member states must take into account, inter alia, the following:

  • The availability of energy from renewable sources and the potential for renewable energy production of the different types of technology in land (surface and sub-surface) and sea or inland water areas.
  • The projected demand for energy, taking into account the potential flexibility of the active demand response.
  • The availability of relevant energy infrastructure, including grids, storage and other flexibility tools.

Member states must periodically review and update these areas in the context of their national energy and climate plans.

Acceleration areas

Recognizing that lengthy administrative permit-granting procedures are a barrier to investment in renewable energy projects, the new Renewable Energy Directive introduces the concept of renewables acceleration areas.

These areas are defined as locations – on land, sea or inland waters – that a State has designated as particularly suitable for the installation of renewable energy plants.

Accordingly, the new Renewable Energy Directive requires member states to ensure, no later than February 21, 2026, that the competent authorities adopt one or more plans designating renewables acceleration areas, as a sub-set of the areas required for their national contributions towards the overall Union renewable energy target for 2030.

In those plans, the competent authorities will designate sufficiently homogeneous land, inland water, and sea areas where the deployment of a specific type or specific types of renewable energy sources is not expected to have a significant environmental impact, while:

  • Giving priority to artificial and built surfaces (rooftops, facades, parking areas, farms, waste sites, industrial sites, etc.).
  • Excluding Natura 2000 sites and areas designated under national protection schemes for nature (except for artificial and built surfaces).
  • Taking into account all appropriate tools and datasets to identify these areas (wildlife sensitivity mapping, etc.).

Plans that designate renewables acceleration areas must establish effective mitigation measures to avoid the adverse environmental impact that may arise or to significantly reduce it.

In addition, by May 21, 2024, Member States may declare as renewables acceleration areas specific areas which have already been designated to be areas suitable for an accelerated deployment of one or more types of renewable energy technology, provided that all of the following conditions are met:

  • Such areas are outside Natura 2000 sites, areas designated under national protection schemes for nature and biodiversity conservation and identified bird migratory routes.
  • The plans identifying such areas have been the subject of a strategic environmental assessment.
  • The projects located in such areas implement appropriate and proportionate rules and measures to address the adverse environmental impact that may arise.

The main benefits for permit-granting procedures for projects located in renewables acceleration areas are summarized below. 

Areas for grid and storage infrastructure

The new Renewable Energy Directive authorizes Member States to adopt one or more plans to designate dedicated infrastructure areas for the development of grid and storage projects that are necessary to integrate renewable energy into the electricity system where such development is not expected to have a significant environmental impact, such an impact can be duly mitigated or, where not possible, compensated for. These areas will be to support and complement the renewables acceleration areas.

Furthermore, an exemption from the environmental assessment and screening process similar to the one for renewal energy projects is also envisaged for grid and storage projects which are necessary to integrate renewable energy into the electricity system.

Simplification of permit-granting process

To speed up permit-granting procedures on a scale necessary for the achievement of the renewable energy target that has been set, permit-granting procedures will be simplified and streamlined. 

Presumption of overriding public interest

By February 21, 2024, member states must ensure that, in the permit-granting procedure, the planning, construction and operation of renewable energy plants, the connection of such plants to the grid, the related grid itself, and storage assets are presumed as being in the overriding public interest and serving public health and safety.