IENE actively participated in the European Commission's Public Consultation on the reform of the EU electricity market design, submitting comments and observations. The Institute welcomes this important initiative by the European Commission, which aims to better protect consumers from excessive price volatility, support their access to secure energy from clean sources and strengthen market resilience.IENE actively participated in the European Commission's Public Consultation on the reform of the EU electricity market design, submitting comments and observations. The Institute welcomes this important initiative by the European Commission, which aims to better protect consumers from excessive price volatility, support their access to secure energy from clean sources and strengthen market resilience.
As the Commission notes in its announcement, the current system has created an efficient, well-integrated market for many years, allowing the EU to reap the economic benefits of a single energy market, securing supply and promoting the decarbonisation process. However, some weaknesses have been identified in the system.
In particular, as the Commission emphasizes, that in the current crisis of high and unstable electricity prices, the financial burden has been transferred to the final consumers. Reform is therefore needed to better protect households and businesses from high energy prices, increase resilience and accelerate the transition set out in the European Green Deal and the REPowerEU plan.
Among its comments, IENE considers that PPAs are indeed a very useful tool for price stability in the medium to long term, as long as there is a possibility that during their tenure they can be resold or even purchased midway through a structured market. This is because 10 or 15 years is a long time for both parties and many things can change during this period.
Another observation concerned the energy system especially the electricity grid, which needs reinforcement and upgrading in order to acquire the necessary electrical space in order to accommodate more RES applications. Emphasis should also be placed on as many photovoltaics on roofs and rooftops as possible, as well as smart metering.
A final comment relates to the transparency and control of the REMIT Market which although at desirable levels, it must be further improved so that there is no waste of resources and unfair competition practices which lead to excess profits, whether by big or small players.
