Deal on EU electricity market reform: What did Paris and Berlin obtain?
(EurActiv, 19 Oct 2023) Both Germany and France claimed victory after an agreement was reached among EU countries on Tuesday (17 October) to reform the EU’s electricity market. Euractiv looks at what Paris and Berlin got out of the deal.
The European Commission tabled the reform proposal in March in a bid to contain rising power prices caused by the Ukraine war – but Germany and France have since disagreed on the specifics regarding nuclear.
The dispute centred on French support to extend the lifetime of its existing nuclear power fleet, with Germany warning this risked distorting the EU market.
The stalemate was unlocked on Tuesday (17 October) when energy ministers from the 27 EU member states agreed their position on reforming Europe’s electricity market
“Europe has shown its capacity to act today,” said Germany’s Vice-Chancellor Robert Habeck, who negotiated the compromise deal for Berlin.
At the heart of the blockade was a European Commission proposal to make contracts for difference (CfDs) mandatory as soon as governments intervene to finance the construction of new power plants.