EU Competition Law, Renewable Energies and the Tendering Model: Quantity Control Versus Price Control in Climate Politics

Abstract

State aid law is a key element of EU competition law. It is currently the subject of a heated debate in the wake of the energy transition. The focus is particularly on support systems for renewable energiesRenewable energies and on the EU Commission’s attempt to force the member states to make a consistent transition towards the tendering modelTendering model. However, the idea that the tendering system is particularly competitive and cost-saving proves to be poorly documented. Under EU state aid lawState aid law, it is also difficult to derive an obligation to a specific support system. Furthermore, various indirect subsidies in favour of fossil fuels are far more problematic in terms of state aid lawState aid law. Overall, the discussion about the call for tenders can also be read as a continuation of the controversy over quantity control versus price control in energy policy—in which the former is slightly superior, but primarily if it is used to phase out fossil fuels (in a timely manner and in all sectors). Obligations under international climate lawClimatelaw also point in this direction.