Article 4Support schemes for energy from renewable sources
1.
In order to reach or exceed the Union target set in Article 3(1), and each Member State's contribution to that target set at a national level for the deployment of renewable energy, Member States may apply support schemes.
2.
Support schemes for electricity from renewable sources shall provide incentives for the integration of electricity from renewable sources in the electricity market in a market-based and market-responsive way, while avoiding unnecessary distortions of electricity markets as well as taking into account possible system integration costs and grid stability.
3.
Support schemes for electricity from renewable sources shall be designed so as to maximise the integration of electricity from renewable sources in the electricity market and to ensure that renewable energy producers are responding to market price signals and maximise their market revenues.
To that end, with regard to direct price support schemes, support shall be granted in the form of a market premium, which could be, inter alia, sliding or fixed.
Member States may exempt small-scale installations and demonstration projects from this paragraph, without prejudice to the applicable Union law on the internal market for electricity.
4.
Member States shall ensure that support for electricity from renewable sources is granted in an open, transparent, competitive, non-discriminatory and cost-effective manner.
Member States may exempt small-scale installations and demonstration projects from tendering procedures.
Member States may also consider establishing mechanisms to ensure the regional diversification in the deployment of renewable electricity, in particular to ensure cost-efficient system integration.
5.
Member States may limit tendering procedures to specific technologies where opening support schemes to all producers of electricity from renewable sources would lead to a suboptimal result, in view of:
(a)
the long-term potential of a particular technology;
(b)
the need to achieve diversification;
(c)
grid integration costs;
(d)
network constraints and grid stability;
(e)
for biomass, the need to avoid distortions of raw materials markets.
6.
Where support for electricity from renewable sources is granted by means of a tendering procedure, Member States shall, in order to ensure a high project realisation rate:
(a)
establish and publish non-discriminatory and transparent criteria to qualify for the tendering procedure and set clear dates and rules for delivery of the project;
(b)
publish information about previous tendering procedures, including project realisation rates.
7.
In order to increase the generation of energy from renewable sources in the outermost regions and small islands, Member States may adapt financial support schemes for projects located in those regions in order to take into account the production costs associated with their specific conditions of isolation and external dependence.
8.
By 31 December 2021 and every three years thereafter, the Commission shall report to the European Parliament and to the Council on the performance of support for electricity from renewable sources granted by means of tendering procedures in the Union, analysing in particular the ability of tendering procedures to:
(a)
achieve cost-reduction;
(b)
achieve technological improvement;
(c)
achieve high realisation rates;
(d)
provide non-discriminatory participation of small actors and, where applicable, local authorities;
(e)
limit environmental impact;
(f)
ensure local acceptability;
(g)
ensure security of supply and grid integration.
9.
This Article shall apply without prejudice to Articles 107 and 108 TFEU.