The electricity market reform that the European Commission will present in mid-March will aim to achieve 70% of electricity production from renewable energy sources by 2030, said EU Energy Commissioner Kadri Simson on Monday 27 February in Stockholm, at the end of the first day of work of the informal meeting of EU energy ministers.
Ms Simson then listed several measures that are currently in the process of being developed: - encouragement of long-term instruments such as contracts for differences to protect users from price fluctuations in short-term markets; - sending of clear signals to stimulate investment in renewable energy; - giving consumers and SMEs the opportunity to benefit from low-risk contractual regimes to consume electricity generated through renewable energy.
The legislative proposal being tabled will be negotiated as part of a co-decision by the European Parliament and the Council of the EU. On behalf of the Swedish Presidency of the EU Council, Swedish Minister Ebba Busch has promised to do everything she can to ensure that the text is adopted in time for next winter. She said that any reform of the electricity market should strike a “balance” between promoting acceptable prices for consumers, ensuring security of supply, and stimulating investment in renewable energy.
“Rumor has it, it’s going to be somewhat of a slimmer product, of a direct product”, she noted at the beginning of the meeting.
Upon arriving in Stockholm, German minister Sven Giegold welcomed early measures such as the introduction of a regulatory framework for long-term contracts, including compensatory contracts for differences, provided that these remain ‘voluntary’ and relate to ‘new energy infrastructures’.
Winter 2023-24. The ministers have also discussed preparations for storing gas for the winter of 2023–24. According to the European Commissioner, the EU should emerge from the current winter with average reserves of 50% and Member States will need to fill their stocks to 80% by November.
According to Ms Simson, “Russia’s blackmail over this winter did not work, but the EU has only won one battle”, with a long battle still to be fought to become totally independent from Russian hydrocarbons (reduction from 155 to 62 billion m3 between 2021 and 2022), to reduce consumption, and to invest massively in renewable energy. She noted that in 2023, China is expected to acquire high volumes of LNG (see EUROPE 13127/11).
She also underlined that the regulatory framework for reducing gas consumption by 15% expires at the end of March, with Europeans having exceeded this target by reaching the 19% threshold. Ministers have also discussed whether to extend the framework; Germany was in favour, but Ms Simson did not announce a date for a new proposal from the European Commission.
Nuclear. In the margins of the ministerial meeting, the French minister, Agnès Pannier-Runacher, brought together her counterparts from those countries that defend nuclear power in their energy mix.
Pointing out that nuclear power accounts for a quarter of the EU’s electricity production, she wanted to discuss with them issues such as supply chains, research and innovation, safety and security, waste management and skills.
“We have more than 100 nuclear reactors working well in the EU and they are playing their part in decarbonisation”, she said, emphasising how important it was for the EU to remain competitive with American, British, Japanese and Chinese competitors. (Original version in French by Mathieu Bion)