The European Commission unveiled a reform of Europe's power grid after 2020 on Wednesday
BRUSSELS, Nov 30 (Reuters) - The European Commission unveiled a reform of Europe's power grid after 2020 on Wednesday, proposing to cut energy waste, better integrate renewables and phase out subsidies for coal-fired electricity generation.
The 1,000-page plan seeks to meet goals on cutting emissions and to adapt Europe's grid to digital technologies and intermittent wind and solar power.
If all the targets are met by 2030, the Commission says it would lead to a 1 percent increase in the bloc's gross domestic product, creating 900,000 new jobs.
The proposal is expected to face a lengthy and tough fight by member states and the European Parliament before becoming law. Below are some of the key proposed changes:
ENERGY EFFICIENCY
The draft law sets a binding target for cutting energy use by 30 percent by 2030, emphasising the potential to create jobs by renovating old buildings that suck up some 40 percent of Europe's energy consumption.
The Commission says the target will save the bloc 70 billion euros on fossil fuel imports compared to a previously discussed but less ambitious target of 27 percent by 2030.
The European Parliament has called for a more ambitious energy saving goal of 40 percent by 2030.
MARKET DESIGN
Aiming to remove barriers to cross-border power flows, the Commission proposal sets up regional centres to improve cooperation among grid operators and hands more power to the EU's energy regulatory agency ACER to rule on bidding zones.
It sets stricter rules on schemes to support stand-by power as insurance against blackouts, including a CO2 limit of 550 grams of CO2 per kilowatt hour for power plants.
The plan pushes member states to get of regulation on power prices and move toward real-time pricing in order to encourage investment to more flexible market actors.
RENEWABLE ENERGY
The proposal sets a collective target for renewable energy to make up at least 27 percent of final energy consumption by 2030 in the bloc. This follows on from what were earlier binding national targets of 20 percent by 2020.
The goal, which includes measures for 254 billion euros of investment into the power sector, is widely criticised by environmental campaigners as lacking in ambition and undermined by weak enforcement rules.
The package also proposes to limit wind and solar energy producers' right to be the first to sell their electricity into the grid for new projects in nations where renewables already account for a large share. But it will maintain the provisions for existing and small-scale installations.
New rules would include a grandfathering clause to protect existing investment from regulatory changes and allow renewable power generators to earn revenue from balancing markets.
Member states can also opt to use renewable energy in centralised heating and cooling systems, with the Commission projecting an increase of 1 percent per year until 2030.
BIOFUELS
It also caps the share of crop-based, or first generation, biofuels used in transport at 3.8 percent by 2030, down from the 7 percent target for 2020. Instead, it seeks to phase in advanced biofuels and electrification to reach 6.8 percent by 2030.
The plan states biomass used for energy production has to be produced sustainably without causing deforestation or loss of biodiversity.
Larger biomass and biogas installations will be required to demonstrate greenhouse gas savings of 80 percent compared to fossil fuels.
Electricity from biomass has to be produced using highly efficient combined heat and power technology.
CONSUMERS
The package proposes increasing the rate at which so called "smart" electricity meters are deployed in households. It also calls for utilities bills to become more transparent and for measures to allow consumers to switch providers more easily.
The Commission's plan aims to remove regulatory barriers for consumers to produce their own electricity and to be remunerated if they sell to the grid. They will also be able to team up with others to generate and consume renewable energy.
The Commission also introduces safeguards before a consumer can be disconnected for not paying a bill.
(Reporting by Alissa de Carbonnel and Robert-Jan Bartunek; Editing by Alexandra Hudson)
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