EU Commission Proposes Reform of the EU Electricity Market Design to Boost Renewables

The European Commission has proposed reforming the EU’s electricity market design to accelerate gas phase-out and promote renewables uptake. The proposals include revising EU legislation to incentivise longer-term contracts with non-fossil power production and promote clean and flexible solutions, such as demand response and storage. The aim is to decrease the impact of fossil fuels on consumer electricity bills and ensure the lower cost of renewables is reflected in them. The proposals will also enhance market transparency and integrity, boosting open and fair competition in the European wholesale energy markets. The reform, part of the Green Deal Industrial Plan, will enable the European industry to access a renewable, non-fossil, and affordable power supply that is a key enabler of decarbonisation and the green transition. In addition, the reform aims to protect consumers from high and volatile prices by promoting price stability based on renewable and non-fossil energy technologies. It will allow consumers to benefit from more price stability and have a wide choice of contracts and more transparent information before signing. The reform also aims to reduce the risk of supplier failure, requiring suppliers to manage their price risks and establishing suppliers of last resort so that no consumer ends up without electricity.

resource: https://esgnews.com/eu-commission-proposes-reform-of-the-eu-electricity-market-design-to-boost-renewables/

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