If there are no last-minute changes to the agenda, the European Commission will present the expected agenda. electricity market design reform Europe, which has been operating with the same rules for more than 20 years, is on March 14. Brussels officially launched the debate in mid-January, and since then many countries have posted their stances and red lines. At the beginning of January, Spain expected the Community Executive to open a public consultation demanding deep reform. Germany, Netherlands, Denmark, Estonia, Latvia, Finland and Luxembourg join the discussion now and report any changes in design in a joint letter. “special” and will accompany Impact assessment.
The situation for these seven countries portends a difficult and complex negotiation when the proposal reaches the table of European governments from mid-March. Seven countries that signed another letter already in October 2021 rejecting electricity market reform, government Pedro Sanchez, They build on the assumption that the European electricity market has proven its resilience and has delivered “enormous benefits” over the past decade, including “low wholesale prices, greater security of supply and large-scale integration of renewable energies”.
Therefore, your bet remains common sense and limited adjustments. “Any reform that goes beyond certain adjustments to the current framework should be supported by an in-depth impact assessment and should not be adopted in crisis mode,” they warn in the letter, published by the Danish government. Seven northern European countries admit that the European electricity system suffered a triple “exceptional crisis” last year due to Russia’s energy war, the limited contribution of nuclear power and low hydroelectric production due to little rainfall. All of this has led to tighter gas supplies, higher electricity prices, and high volatility that puts homes and businesses under pressure.
lessons from the past
They argue that Europe should learn from last year, but not lose sight of what the big goal should be: securing supply at affordable prices while maintaining ambitious climate and energy targets in the medium/long term. . “It is crucial that attempts to address the issue of affordable electricity prices and security of supply do not endanger the markets. efforts decarbonization and the smooth functioning of the electricity market”.
The seven insist that the reform proposed by Brussels should be based on five principles. First, to allow the continued integration of electricity markets, increase interconnection capacities and remove barriers to integration. They also warn that investments in the green transition, which is estimated at 487,000 million euros per year between 2021 and 2030, need to be protected and improved, and they are so-called ‘skeptics’.benefits falling from heaven The energy companies brought in by Spain “may jeopardize investor confidence in necessary investments”, not to mention the Government.
voluntary agreements
They also call for more efficient short-term markets. “Short-term efficient markets based on marginal pricing provide a solid basis for achieving efficient prices that provide adequate shipping and incentives for a decarbonised electricity sector,” the seven countries supporting the campaign say. long-term contractssuch as energy purchase agreements and differential contracts, as they offer greater security to investors. However, these agreements must remain voluntary. Focusing solely on renewable energies, as opposed to countries like Spain, which want widespread deployment. The letter also advocates the inclusion of measures to strengthen consumer protection so that they have the ability to choose variable or fixed contracts and reduce barriers to entry for new entrants such as energy communities, making it easier for consumers to group together and distribute their production. on a small scale.