posted on 2023-08-30, 16:25authored byScott A. Fotheringham
This research considers the EU’s 21st century objective of mitigating climate change
by promoting renewable electricity and the multiple legal conflicts between this
objective and EU’s core legal principles of free movement, the prohibition of
distortion of competition and other forms of state aid.
This research fills a gap in academic literature by analysing the EU renewables
regulatory framework. The research finds renewable electricity is accorded a
‘special’ status, allowing export restrictions, price enhancements, priority market
access, tax exemptions and payment guarantees. This ‘special’ status is analysed
via case law and empirical research data.
The case law analysis confirms a lex specialis approach by the CJEU. This is
considered problematic from a legal consistency point of view, as it leads to unclear
investment signals and short-termism in an industry with long-term investment
horizons.
Uniquely, within the academic context, the empirical research considers how market
operators view these conflicts, via the findings of semi-structured interviews. The
research shows that market operators (i) prioritise regulatory stability to ensure longterm
asset business case validity, (ii) mitigate against uncertainty via higher financial
returns and (iii) lobby legislators and regulators to manage change. Market operators
recognise that diagonal conflicts exist and see the CJEU’s use of lex specialis as a
temporary expedient, surrounded by judicial and political risk.
The research proposes regulatory change to remove the ‘special’ status and outlined
diagonal conflicts, including carbon pricing mechanisms, removing fossil fuel
subsidies and enforcing network access rules. These proposals align the regulatory
framework with EU free trade principles - to create long-term regulatory stability,
valued by market operators.
History
Institution
Anglia Ruskin University
File version
Accepted version
Language
eng
Thesis name
PhD
Thesis type
Doctoral
Legacy posted date
2019-07-09
Legacy creation date
2019-07-09
Legacy Faculty/School/Department
Theses from Anglia Ruskin University/Faculty of Business and Law