The four main groups in the European Parliament – the Progressive Alliance Group of Socialists and Democrats, the European People’s Party, Renew Europe and the European Green Party – reached an agreement on Wednesday. agreement about the changes reform electricity market it softens proposal originally put forward by the MEP Nicholas Gonzalez Casares and your team. Thus, the text goes beyond the imposition of a substitution. Limitation on revenues of electricity companies for crisis situationsIt was the most criticized measure. energy companies. But there’s one more thing companies don’t like: ban on turning off the light on vulnerable consumers.
Of course, the deal says, European Commission will have to do report before June 2024 accompanied by bill includes “temporary relief valve” measures in case prices skyrocket. in case of energy crisissuggested compulsory (before it’s optional) for The European Commission will announce it, but The criteria have been hardened.. Parliament, in its first proposal, average price of wholesale markets HE double the average of the last five years and is expected to continue in this way for three months. The two conditions proposed by the Commission in its reform have now been established, but the third has been removed which he pointed out must have “a negative impact on the economy”.
Therefore, if a crisis is declared prices in the wholesale market It will increase two and a half times compared to the previous five years and will remain at the same level for 6 months. Minimum price of 180 Euros per megawatt-hour (MWh)and also retail prices increases by 60% (70% says the Commission proposal) compared to the previous two years and when expected to continue in this way for 3 months (6 months in the Commission proposal).
Therefore, this Thursday’s pact, much looser and what is near European Commission Initially. Text still needs to be voted next July 19 at the Energy and Industry Committee European Parliament, but it doesn’t have to be done exactly. At the same time, Twenty seven They will try to find a deal to spawn their own text as soon as possible and thus trilogy – tripartite negotiation between Parliament, Council and European Commission– trying to reach compromise as you wish before the end of the year Spainwho is responsible for distributing the time by running the presidency Council of the European Union.
capacity markets
The main innovation last resort character between capacity mechanisms –a payment for the capacity of a technology, not for its production– and its Commission a evaluation on its introduction as the “structural element” of electricity market design. This would be a little closer to Spain’s demand to normalize such markets, since these storage technologies batteries, pumping and above all combined cycles. But it is very difficult to initiate them unless it is an emergency at the moment.
Among the innovations is European auction system renewable energy will “complement” Member States’ efforts to reach 45% renewable energy by 2030. Do not reach 45%.
It is also added that regulatory authorities should encourage its use. expected investmentspromote the acceleration of network development to meet accelerated deployment renewable generation and smart electricity demand, such as electric vehicles and heat pumps. This dealers should offer the opportunity flexible connections making more efficient use of the existing capacity of the grids and avoiding renewable projects or electricity demand having to wait for years for a connection point such as electric vehicle chargers.
No change to CFDs
As far as both CfDs and PPAs are concerned, they remain different from the European Commission’s proposal, but income should be directed for vulnerable consumers by priority, to the energy transition to cover its own costs, and to electro-intensive industry in crisis situations. On the other hand, for consumers, in addition to prohibiting power cuts for vulnerable people, some thresholds that it will be possible to introduce the procedure power reduction and Member States’ authorization to accept Special precautions for winter and summer seasons This allows local customers to manage their consumption and avoid high bills.