“The revised Electricity Market Design must deliver on the EU climate objectives”, says SGI Europe

On Tuesday 14 March 2023, the European Commission presented its proposal to revise the Electricity Market Design. With this package, the European Commission aims at accelerating the deployment of renewables, helping to make energy prices less dependent on fossil fuel prices, protecting better consumers and supporting the green transformation of the EU industry.

Following the presentation of the proposals, Valeria Ronzitti, SGI Europe General Secretary, said:

“SGI Europe welcomes the proposals set out today by the European Commission. Reconnecting the electricity market design with the EU Green Deal and REPowerEU is key to boosting renewable and low-carbon technologies. The current market design has functional elements to create a competitive energy market, but the impacts of the Russian war highlighted dysfunctional elements. The Electricity Market must be resilient, based on  sustainable and low-carbon energy technologies, while considering the maturity of all technologies and applying the technology-neutrality principle and a robust CO2 price.”

“The new framework will have to deliver on the EU climate objectives and enable a cost-effective transition by adding long-term market mechanisms to the existing short-term market. SGI Europe generally welcomes measures to create safety nets between short-term markets and consumers. It is also crucial to guarantee the security of supply at all times.”

“Energy efficiency must remain the core guiding principle for EU energy policy. To that aim, the reviewed Electricity Market Design will have a key role to play, but will have to be accompanied by low-carbon technologies, renewable and decarbonised gases, district heating systems (wherever economically feasible), and a new hydrogen market.”

(Image: Source: EC - Audiovisual Service)