1 Introduction

2 Part 1: EU energy market policy: overview, principles, roles for local and regional authorities and criticisms of key stakeholders

2.1 EU energy market policy

2.1.1 Third Energy Market Package

2.1.2 Security of Electricity Supply and Infrastructure Directive

2.1.3 Price Transparency Directive

2.1.4 Renewable Energy Directive

2.1.5 Energy Efficiency Directive

2.1.6 Energy Performance of Buildings Directive (EPBD)

2.1.7 Energy Union

2.2 Role of local and regional authorities

2.2.1 Third energy market package

2.2.2 Security of Electricity Supply and Infrastructure Directive

2.2.3 Price Transparency Directive

2.2.4 Renewable Energy Directive

2.2.5 The Energy Efficiency Directive

2.2.6 Energy Performance of Buildings Directive

2.2.7 Energy Union

2.2.8 Summary

2.3 Summary and conclusions of criticisms on EU energy market policy

3 Part 2: Local and regional case studies

3.1 Case study: Power to Heat in Denmark and the Netherlands

3.1.1 Introduction to project/case

3.1.2 Elaboration of the relevant challenges and innovative approaches

3.1.3 Lessons learned and upside potential

3.2 Case study: Cooperatives/small case generators – the case of SOM Energia

3.2.1 Introduction

3.2.2 Elaboration of the relevant challenges and innovative approaches

3.2.3 Lessons learned and upside potential

3.3 Case study: Misalignments between ETS and RES policy

3.3.1 Introduction

3.3.2 The challenges, solutions and innovative approaches

3.3.3 Lessons learned and upside potential

3.4 Case study: Potential problems of state aid guidelines for smaller market participants: the transition to a tender system in Germany

3.4.1 Introduction

3.4.2 The challenge

3.4.3 Lessons learned

3.5 Case study: Potential distortive effects of capacity markets

3.5.1 Introduction

3.5.2 Capacity Payments

3.5.3 Distortive Impacts: The Case of Spain

3.5.4 Lessons learned

3.6 Other illustrative cases

3.6.1 Cooperatives in Croatia

3.6.2 Cooperatives in Portugal

3.6.3 Dutch 'Passive Control' - Flexibility provision through arrangements outside of formal TSO balancing market

3.6.4 Scarcity pricing: High prices and investment boom

3.6.5 Conflicting policies: LCP plant closures

3.7 Conclusions

4 Part 3: Market regulatory and economic problems for local and regional energy efficiency initiatives and projects

4.1 Overview challenges

4.2 Financing of energy efficiency initiatives and projects

4.2.1 The role of Energy Service Companies

4.2.2 Development and implementation of innovative financing instruments

4.2.3 The role of cooperatives and citizens' engagement

4.3 Data access, collection and exchange

4.3.1 Local and regional energy data

4.3.2 Individual building energy performance data

4.3.3 Data privacy and commercial sensitivity

4.3.4 Economic challenges

4.4 Access to the grid for local RES

4.5 Small-scale production and distribution network

4.6 Incentive for investments in generation, transmission, and storage

4.7 Role of energy consumers/ prosumers

4.8 National support schemes, and state aid

4.9 Emission trading scheme

5 Conclusions and recommendations

5.1 Local and regional experience in the implementation of the EU energy market acquis

5.2 Recommendations with regards to the consideration of the role of LRAs

6 References

7 Annex: Main criticisms by key stakeholder organisations at the EU level

7.1 Criticism from key industrial stakeholders

7.1.1 Chemical Industry

7.1.2 Iron and steel industry

7.1.3 Refining industry

7.1.4 Pulp and paper industry

7.1.5 Electricity sector

7.1.6 Renewable Energy Sector (European Wind Energy Association)

7.2 Criticisms from societal organisations and NGOs

7.2.1 BEUC – The European Consumer Organisation

7.2.2 The German Renewable Energy Federation (BEE)

7.2.3 German League for Nature, Animal and Environment Protection

7.2.4 Greenpeace European Unit

7.2.5 EREF

7.3 Criticisms from expert organisations

7.3.1 International Energy Agency

7.3.2 Clingendael International Energy Program (CIEP)

7.3.3 German Institute for Economic Research, DIW Berlin

7.3.4 E3G – Third generation environmentalism