RED III and renewable electricity

August 3, 2023

T&E outlines the best practices for crediting renewable electricity as a transport fuel under the Renewable Energy Directive.

The 2023 revision of the Renewable Energy Directive (RED III) was adapted to momentous changes in the transport sector and road transport in particular: The role of gaseous and liquid fuels will shrink over time, as Battery Electric Vehicles (BEVs) will dominate in the longer term. Already by 2030, a rapid growth in BEV sales will result in a significant share of the existing fleet running on electricity.

In that context, it is crucial to reserve a greater role for renewable electricity (RES-E) as transport fuel, moving away from an exclusive reliance on biofuel blending mandates. The RED III obliges member states to introduce a credit mechanism in all EU27 to allow operators of public  recharging points to sell credits for the RES-E charged by BEVs to fuel suppliers. This will require significant changes in how member states promote renewables in transport. In this briefing, T&E advocates for an ambitious implementation of these credit mechanisms, in a way that supports the roll-out of public recharging infrastructure, electromobility in general and also encourages drivers to maximize the share of RES-E in their recharging sessions.

Drawing on best practices in countries with a credit mechanism, the following recommendations will deliver on the above-mentioned goals:

  • For public recharging, credit should not be limited only to metered kWhs, but also introduce credits for rolling out (fast-recharging) capacity.
  • Private recharging should be included in the scope. Fixed values for different types of BEVs are an easy way to recognize that the bulk of RES-E recharging will be ‘behind the meter’.
  • It should be possible to credit 100% RES-E by introducing workable rules on a ‘direct connection’ between a recharging point and e.g. wind and solar.
  • Multipliers to recognize the higher efficiency and GHG savings are crucial to adequately credit RES-E. The RED III’s 4x multiplier for RES-E is a good starting point.

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