Reaching net-zero

Eurelectric's three pillars for Europe's electricity market reform - Seite 2

A market-compatible investment framework

Long-term instruments are also critical for capital-intensive investments in low-carbon and renewable technologies, as they provide price stability and long-term visibility on returns. De-risking such contracts could help bolster the massive investment rates needed to deliver on 2030 targets, which must reach around €80 billion per year in order to achieve the political objectives. 

To ensure the proliferation of long-term instruments it is critical to remove legislative barriers hindering their use. This is especially the case for private PPAs.

Public authorities can play a complementary role when investment signals do not come from the market. State-backed CfDs, for instance, are often successfully used for large-scale renewable projects. However, CfDs should not be applied retroactively, and their use should remain voluntary to avoid hampering small-scale projects and constricting the private initiative.

The study also points out the critical need to ensure a balance between the different long-term instruments. It devises innovative, technical options for calibration mechanisms and CfDs designs.

Eurelectric's Secretary General Kristian Ruby details in a video how to strike a careful balance between the State and the market to prevent the cannibalisation of private initiative.

A security of supply framework

A final addition to an electricity market fit for net-zero is one that allows better anticipation and coordination of power system needs and safeguards security of supply.

As the energy system changes with increased electrification and decentralised generation, a more granular view of the changing dynamics is needed, particularly in the medium and low-voltage grids. This can help inform decisions on grid reinforcements and buildout of flexible and firm capacity. The study details how adequacy assessments and network plans can be detailed in terms of timeframes and suggests that they elaborate further on climate impacts on the energy system.

The study is launched at an event today with more than 1000 registered participants and the EU Commissioner Kadri Simson as keynote speaker.

Photo -  https://mma.prnewswire.com/media/2042149/Eurelectric.jpg
Video - https://www.youtube.com/watch?v=DfHUEM91AX8

 

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