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EU electricity market deal positive for renewable energy PPAs

July 21, 2023
in News
EU electricity market deal positive for renewable energy PPAs
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The European Union needs to secure a final agreement on its new electricity market design by the end of this year.

July 20, 2023 Sandra Enkhardt

Image: Matthias Eckert, Wikimedia Commons

The Energy Committee of the European Parliament says that it welcomes a broader use of contracts for difference (CFD) for the development of renewable energy. Fifty-five members of parliament in the Committee on Industry, Research and Energy (ITRE) have supported the EU electricity market reforms, while 15 voted against them and two have abstained.

The Energy Committee of the European Parliament has instructed the EU Commission to set up a marketplace for PPAs by the end of 2024. They also spoke out in favor of allowing “non-fossil flexibility” for the stabilization of the electricity grids, as well as flexibility on the demand side from, for example, residential storage systems linked to PV. This can help balance the electricity grid, reduce price volatility and enable consumers to adjust their energy consumption in line with prices and their needs.

“This vote sends a powerful signal to the EU capitals, as the Energy Council works to agree its own position,” said Naomi Chevillard, head of regulatory affairs at SolarPower Europe. “EU institutions must now complete negotiations to ensure a fast adoption of the text, which also contains positive proposals for the growth of PPAs, rooftop PV and grid integration of solar.’‘

The RE-Source platform said that the agreement encourages more investment in renewable energy and reinforces the importance of renewable power purchase agreements (PPAs) as a significant tool for funding the energy transition in Europe.

“The council now needs to align on their own position, likely after the summer break,” it said. “This will be followed by … negotiations involving the council, European Parliament and European Commission. The EU aims to agree on the framework by the end of 2023.”

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