Europe is engaged on “a structural reform of the electrical energy market
France had requested final April for a change within the guidelines of operation of the European electrical energy market. “You have got electrical energy costs which are hovering and not have something to do with the prices of manufacturing electrical energy, it follows the gasoline, it’s absurd,” alerted President Macron
Certainly, the value of electrical energy is decided by the most costly plant – at the moment gas-fired vegetation. Costs on the futures market are reaching document ranges. For electrical energy delivered subsequent 12 months, the value in Belgium is 611 euros per MWh. in France, the value of electrical energy for supply in 2023 reached 875 euros per MWh on Thursday, a rise of about 80 euros.
Southern EU international locations like Spain and Greece have additionally been calling for market intervention for months. Thus far, nevertheless, they’ve been unsuccessful, partially due to German resistance.
Extra just lately, a number of European states have requested to contemplate a “decoupling” of gasoline and electrical energy costs.
On Sunday, Belgian Vitality Minister Tinne Van der Straeten (Groen) known as for a European-wide cap on gasoline costs.
“Right this moment, electrical energy is produced at a a lot cheaper price than the value at which electrical energy and gasoline are offered. Right this moment we’re in a conflict financial system, there isn’t any longer any hyperlink between the price of manufacturing and the price of sale. There may be a variety of hypothesis,” she defined.
On the identical day, Austrian Chancellor Karl Nehammer known as on the EU to “decouple the value of electrical energy from that of gasoline” to “cease this insanity”.
Germany, which has to this point been against any change to the present regime, can be starting to know that that is the one potential resolution. German Chancellor Olaf Scholz stated at a press convention in Prague that the present system “can’t be described as practical if it results in such excessive electrical energy costs.
On Monday, European Fee President Ursula von der Leyen introduced that the EU is getting ready “a structural reform of the electrical energy market”.
“The skyrocketing electrical energy costs at the moment are exposing, for various causes, the constraints of our present electrical energy market design. It was developed below utterly completely different circumstances and for utterly completely different functions. It’s not match for function. That’s the reason we, the Fee, at the moment are engaged on an emergency intervention and a structural reform of the electrical energy market. We want a brand new market mannequin for electrical energy that actually features and brings us again into steadiness.”
The Czech Presidency of the EU Council indicated that it could convene an emergency assembly of EU vitality ministers on 9 September in Brussels.
