Industry groups call for flexible EU power market

An alliance of renewable energy, manufacturing and gas groups have joined forces to call on the EU to remove barriers to the development of a “flexible and dynamic” energy system. […]

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By Priyanka Shrestha

An alliance of renewable energy, manufacturing and gas groups have joined forces to call on the EU to remove barriers to the development of a “flexible and dynamic” energy system.

A declaration has been issued by signatories including the European Wind Energy Association (EWEA), Smart Energy Demand Coalition, European Association for Storage of Energy and European Engine Power Plants Association.

They believe a market-driven environment is the best means to provide long term investment signals while meeting all systems needs and accommodating the growing share of renewables in the energy mix.

The organisations see “many constraints” in the industry, in particular “depressed wholesale market prices” due to overcapacity”, fading EU co-ordination of policies “with a tendency towards renationalisation” and outdated market rules.

They have identified three key areas of reform to be addressed by the EU:

  • Providing adequate price signals and further integration of short term markets across borders
  • Ensuring a balanced approach that fully takes into account the contribution from renewables and demand sources
  • Implementing a level playing field for all flexibility providers to foster pan-European trading of electricity and grid support services

Giles Dickson, CEO of the EWEA said: “Europe must rewrite the rules governing electricity markets so they fit the reality of how power is generated, managed and consumed in today’s energy system. Supply is getting more flexible and variable. Storage solutions are developing. And there’s growing scope and interest in making demand more flexible.

“The energy system is now more complex to plan, control and balance. It needs enhanced flexibility, which requires significant changes in the relevant legislation. The Commission has a golden opportunity with the market design proposals they’ll issue at the end of the year. They must seize it.”

The European Commission told ELN it is not commenting.