17 January 2023
WindEurope response to Spain’s proposals on Electrical energy Market Design
The European Fee is planning to desk a reform to Electrical energy Market Design guidelines in March to assist handle Europe’s power disaster.
Forward of the general public session, Spain has issued a non-paper setting out its personal proposals for electrical energy market guidelines. A part of its said rationale is creating a greater framework for personal funding in renewables.
The wind business agrees on the necessity for a future-proof market design that drives investments in renewables and ensures safety of provide for Europe’s households and companies.
Nevertheless, Spain’s proposals appear excessively targeted on making use of Contracts-for-Distinction (CfDs) for each new and current infra-marginal energy technology property.
Whereas Contracts-for-Distinction have proved efficient to assist de-risk wind investments, it’s important that they don’t seem to be the one driver for renewables investments.
There may be rising urge for food from corporates to acquire electrical energy straight from renewable power producers. 6.6 GW of renewables have been contracted beneath Energy Buy Agreements in 2022.
The Electrical energy Market Design reform should absolutely leverage the potential of Company PPAs and different types of long-term contracting resembling personal CfDs, relatively than crowd them out with a unique concentrate on Authorities managed CfDs.
The present power disaster is placing Europe to the check. This doesn’t imply that 20 years of efforts in the direction of a well-integrated inner power market ought to now cease.
Alongside facilitating long run contracts (Contracts-for-Distinction, Company Renewable PPAs) the Market Design reform wants to go away house for innovation and investments pushed by market dynamics.
That is indispensable to unlocking the investments within the volumes essential to ship on our power safety and local weather goals.