WindEurope emphasizes that the success or failure of the Net Zero Industry Act (NZIA) is contingent upon the appropriate design of wind energy auctions. The industry association expressed its stance as EU Member States reached an agreement on their position for forthcoming negotiations with the European Parliament on the NZIA.
Diverging on crucial aspects, the Council and Parliament are currently engaged in final negotiations, expected to conclude by the end of the first quarter of 2024. WindEurope asserts that it is crucial for the NZIA to establish clear, EU-harmonized, technology-specific, and immediately applicable modifications to wind energy auction design.
According to WindEurope, only through such adjustments can the expansion of the wind energy supply chain effectively contribute to meeting Europe’s energy security and climate objectives.
Highlighting the need for the EU to install approximately 30 GW of new wind turbines annually from now until 2030, WindEurope emphasizes that the EU’s top-notch wind supply chain must remain resilient and expand to fulfill these targets. The European Commission introduced the NZIA earlier this year as the EU’s initiative to enhance and upscale European clean tech manufacturing.
In her State of the Union Speech, President von der Leyen of the EU Commission conveyed the following message “the future of our clean tech industry has to be made in Europe.”
WindEurope said “The Council’s position adopted today endorses the principle of pre-qualification criteria in renewable energy auctions which is a step in the right direction. Pre-qualification criteria are essential to raise the bar and ensure the technology installed in Europe meets minimum requirements, for example on cybersecurity.”
“But the Council’s position leaves the possibility open of having 27 different sets of pre-qualification criteria which would be an administrative nightmare for market players and would lead to unnecessary costs.”
“Crucially, the Council’s position includes a very long phase-in period for pre-qualification and non-price award criteria. They would only apply to 20% of the auction volume until 2029, thereby cementing a two-tier market.”