EU to revamp power market, aiming to blunt price spikes

📆 3/14/2023 2:35 AM
📰 Reuters

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The European Commission is set to propose a revamp of Europe's electricity market rules, aimed at expanding the use of fixed-price power contracts to shield consumers from severe price spikes like those experienced last year

Two-way CfDs offer generators a fixed "strike price" for their electricity, regardless of the price in short-term energy markets.

Fossil fuel-powered generators would not receive this support. The aim is to direct support towards the huge investments in renewable energy EU countries need to quit Russian fossil fuels and meet climate change goals. Currently, power prices in Europe are set by the final generator needed to meet overall demand. Often, that is a gas plant, so gas price spikes - like those caused last year by Russia slashing gas deliveries - can send electricity prices soaring.

Another camp of countries, including Germany, Denmark and Latvia, have warned major changes could scare off investors.

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Or, maybe they could just stop their INSANE war on fossil fuels…which is causing energy shortages across Europe🤔

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