As part of a drive to show their commitment to the international climate agreement reached in Paris and the transition to sustainable energy, companies in the European electricity sector pledged on Wednesday 5 April not to build any new coal-fired power stations after 2020. The Greek and Polish electricity companies did not, however, support this pledge.
EURELECTRIC, the pan-European electrical industry association representing 3,500 companies across Europe with an aggregate turnover of €200 billion, stated the sector’s determination “to play a key role in providing clean energy for all Europeans and make electricity a central energy carrier for the low carbon economy” in announcing its intention not to invest in new-build coal-fired power plants after 2020 (though, in this, it does not have the support of its Polish or Greek members).
“EURELECTRIC’s members are committed to delivering a carbon neutral power supply in Europe by 2050, and to ensuring a competitively priced and reliable electricity supply throughout the integrated European energy market”. This, “together with the electrification of key sectors, such as heating, cooling and transport, will make a major contribution to help Europe meet its climate change targets”, the association says in a statement.
“Electricity is on track to becoming a carbon neutral energy carrier and, if used more widely, will open the door for many more positive changes, spill-overs in sectors which currently have no prospect of becoming fully sustainable”, it adds.
EURELECTRIC believes that market-based mechanisms, such as carbon markets, are the “most cost-effective and efficient tool” for mitigating greenhouse gas emissions and stimulating investments in low carbon technologies and energy efficiency.
“Only the combination of an effectively reformed EU ETS and improved EU electricity market design can lead to sustainable and credible carbon price signals to drive investments to mature low carbon technologies”, the statement continues.
“The power sector is already widely investing into low-carbon and innovative solutions to achieve carbon-neutral electricity supply by 2050, and does not intend to invest in new-build coal-fired power plants after 2020”, it adds.
“This transition in the power sector requires a coherent regulatory framework with complementary and clearly targeted policy instruments as well as a balance between incentives and protection for investors”, said EURELECTRIC President and Chief Executive of the Portuguese energy group EDP Antonio Mexia in a press release.
“The sector is already leveraging investments to reduce GHG emissions. Policy makers must go for a balanced, market-based approach to the energy transition. Their challenge in the next two years will be to target the political instruments, ensure that they are complementary and advance decarbonisation and electrification at the same time” stated EURELECTRIC Secretary General Kristian Ruby at a press event. (Original version in French by Emmanuel Hagry)