Brussels, 11/09/2014 (Agence Europe) - Barriers against the import of electricity from other member states with the aim of encouraging the domestic generation of renewable energy are justified in Community law, the Court of Justice of the EU said in its ruling on Thursday 11 September in joined cases C-204/12 to C-208/12 with regard to the Flemish green energy certificate scheme.
The Court had been asked about the compatibility between the directive on the promotion of green energy (2001/77/EC) and the system of green certificates established in the Flemish Region of Belgium. The scheme was based on two general principles: electricity producers can apply to the Flemish authorities for green certificates and electricity suppliers must surrender to the regulatory authority a certain number of green certificates every year, attesting that some of the electricity supplied comes from renewable sources
A Belgian electricity supplier, Essent, surrendered to the authorities guarantees of origin attesting that the energy it was selling was from renewable sources, as required by the directive. However, this electricity was produced in other member states, including Denmark and the Netherlands. The Flemish authorities did not accept those guarantees as green certificates since the electricity in question had not been produced in Flanders.
Had the Flemish authorities infringed the directive and contravened the principle of freedom of movement of goods? The Court said that there was no infringement in one and, while there was an infringement in the other, it was justified. The directive does not establish a link between guarantees of origin and national support schemes, thus member states are not required to recognise certificates of origin for electricity produced in another member state. The reason for this is that the aim of the directive is, in part, to increase generation of green energy in each member state.
Thus, a green certificate scheme, such as the one operating in Flanders, may hinder the import of electricity produced in other countries, thereby constituting a restriction to the free movement of goods. The Court says that this restriction is justified by the public interest objective of promoting the use of renewable energy sources. To achieve the objective pursued, it is proper that the measures favouring the transition to green energy be aimed at the production stage rather than the consumption stage, according to the Court. (JK)