EU countries agree, eyes on parliament
The energy ministers of the EU countries met in Luxembourg to discuss the reform of the electricity market.
Making a statement at the end of the meeting, the EU mandate chair, Swedish Energy Minister Ebba Busch, said: “Long and difficult negotiations on the design of the electricity market took place today.” saying.
Noting that member states could not reach an agreement on power market reform, Busch said certain parts of the package will be discussed at ambassadorial level after this stage.
DIFFERENT OPINIONS APPEARED
Busch, the main subject of disagreement; Pointing out contracts for difference and how to use them, he said: “Today’s negotiations have revealed different views on what merger is difficult.” he used the phrase.
EU energy commissioner Kadri Simson said: “It was not possible to determine a general approach for the whole package including electricity market design reform.” she performed her assessment.
Noting that there is a problem of expression regarding the application of contracts for difference to existing investments, Simson emphasized that it takes time to find a solution.
PROVIDES GUARANTEE OF MINIMUM INCOME TO INVESTORS IN THIS AREA
The reform, which aims to expand low-carbon electricity generation and avoid a repeat of the energy crisis, includes renewable energy and low-carbon nuclear power plants within the scope of “differential contracts”, providing a minimum income guarantee investors in this field.
Some countries, such as Poland, want thermal power plants to be included in the capacity mechanism, which includes subsidies paid to electricity generators, to ensure sufficient generation capacity is maintained in the event of outages.
Another group of countries, including Germany, Belgium and Luxembourg, oppose the coal subsidy on the grounds that it would undermine climate change targets.
Under the current system, the wholesale price of electricity in the EU is determined by the final generator needed to meet full electricity demand, and often by natural gas power plants that can be brought online quickly.
During last year’s energy crisis, rapidly rising natural gas prices destabilized this market and pushed electricity prices to record levels.
The reform aims to update this market.
For the planned electricity market reform to be implemented, it must be approved by member states and the European Parliament (EP).