Wind industry calls for caution as EU overhauls power market
(EurActiv, 27 Apr 2023) As the European Union prepares to reform its electricity market, the wind industry has urged policymakers to avoid rocking the boat and keep as close as possible to the European Commission’s original proposal.
Brussels tabled an overhaul of the bloc’s power market rules on 14 March, aiming to tame volatile electricity prices that went through the roof last year after Russia invaded Ukraine.
To stabilise prices, the Commission sought to promote long-term contracts such as power purchase agreements (PPAs) passed between energy companies and electricity buyers, and contracts for difference (CFD), where the state intervenes to guarantee a minimum price to power generators.
However, the Commission did not change the fundamentals of the EU market, which will remain based on the current marginal pricing system where cheap renewables and nuclear power are called in first to meet consumer demand.
The Commission proposal also did not retain the price caps for gas used in electricity generation implemented in countries like Spain and Portugal, which kept prices artificially low for consumers and harmed the finances of energy firms.
EurActiv, 27 Apr 2023: Wind industry calls for caution as EU overhauls power market