Spain is steering the electricity market reform from a position of leadership as it hosts a three‑way dialogue among European employers, the major electric utilities, Eurelectric, and the European Commissioner for Energy, Kadri Simson. The unofficial ministerial summit in Valladolid, aligned with Spain’s presidency of the Council of the European Union, focused on shaping a roadmap that avoids permanent emergency measures. Participants emphasized resisting revenue caps on marginal power plants and rejecting rigid price regulation for current generation, aiming instead for market‑based, incentive‑driven reforms. (Eurelectric briefing, 2024)
Representatives from the electricity sector pressed for the promotion of long‑term energy contracts, also known as power purchase agreements (PPAs), and requested more flexible financial rules to strengthen liquidity for market participants. The goal was to support marketers in meeting mandatory guarantees and to facilitate investment incentives for transmission and distribution networks, including the possibility of upfront investments when appropriate. (Industry brief, 2024)
Industry stakeholders argued that an expanding share of renewables, coupled with greater deployment of heat pumps and electric vehicles, would create more complex network flows. They asserted that delivering a secure, reliable system would require much higher investment, with an expected increase from roughly 23 billion euros per year to at least 69 billion euros by 2050. (Market outlook report, 2024)
The meeting, held in a hotel on Valladolid’s outskirts during the ministerial summit, brought together Eurelectric’s Vice President and CEO, Markus Rauramo, and Eurelectric’s general secretary, Kristian Ruby. A broad presence from the Spanish business community included the Spanish employers’ association AELÉC, with leadership figures including the chair, general manager, and regulatory director, Marina Serrano, Paloma Sevilla, and Marta Castro. Executives from Endesa, Iberdrola Spain, José Bogas and Mario Ruiz Tagle, and from EDP Spain, Ana Paula Marques, were also in attendance. (Industry participants, 2024)
On behalf of the government, the event was supported by the third vice‑president and minister for the Ecological Transition, Teresa Ribera, along with the IDAE general manager, Joan Groizard. (Government brief, 2024)
The Spanish stance favors a more intrusive reform of the electricity market. Central to the reform is a proposal to regulate a fixed price for nuclear and hydroelectric plants, a measure industry players have strongly opposed, particularly for hydro, where cost recovery is more sensitive. Ribera, as chair of the EU Council Presidency, has signaled urgency to reach a deal by year’s end, emphasizing pace in the negotiations. (EU policy briefing, 2024)
Since July 1, Spain has assumed the role of facilitator among the Twenty‑seven, aiming to move the electricity reform forward while balancing national interests with broader EU objectives. The Council’s general approach, established on June 19, set the stage for negotiations but exposed disagreements over how to distribute income between contracts for difference and which generation assets would be affected, among other issues such as whether new investments should be counted differently from existing ones. (Council deliberations, 2024)
Members of the European Parliament indicated a timetable to vote on July 19, aligning with the industry’s push for strict income limits on marginal electricity production and the protection of vulnerable consumers. Spain seeks to reach a timely agreement and has urged the 27 EU members to begin constructive trilogues among Parliament, Council, and Commission with the aim of finalizing an accord before December 31 of the current year. (European Parliament and EU stakeholder updates, 2024)