Commission proposes EU electricity market design reform to boost renewables
Process in Brief
The proposal revises several EU laws including the Electricity Regulation, the Electricity Directive and the REMIT Regulation and introduces measures to incentivise longer‑term contracts with non‑fossil power producers. It also promotes clean flexibility such as demand response and storage, requires two‑way Contracts for Difference for public support to new infra‑marginal and must‑run renewables, and strengthens market transparency and monitoring by ACER and national regulators.
What Is at Stake
The reform aims to accelerate the deployment of renewables and the phase‑out of gas while making consumer bills less exposed to fossil fuel price volatility and protecting vulnerable consumers from disconnection. It also seeks to boost industrial competitiveness by facilitating long‑term power purchase agreements and channeling excess producer revenues to consumers.
Timeline
The proposal must now be discussed and agreed by the European Parliament and the Council before it can enter into force.
Sources
Official Documents
- Commission proposes reform of the EU electricity market design to boost renewables, better protect consumers and enhance industrial competitiveness The Commission proposed amending the EU electricity market design to boost renewables, reduce consumer exposure to fossil-fuel price volatility, and strengthen market integrity, including long-term contracts, PPAs, CfDs, storage, and REMIT enhancements.
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