The European Union (EU) countries could not reach a consensus on the electricity market reform due to the disagreement over the support of coal power plants.
Energy ministers of EU countries met in Luxembourg to discuss electricity market reform.
Making a statement at the end of the meeting, EU Term President Swedish Energy Minister Ebba Busch said, “Long and difficult negotiations were held today on electricity market design.” said.
Noting that the member states could not come to an agreement on the electricity market reform, Busch said that certain parts of the package will be discussed at the level of ambassadors after this stage.
Busch, the main subject of disagreement; “Today’s negotiations have revealed divergent views that are difficult to merge,” he said. used the phrase.
EU Commissioner for Energy Kadri Simson said, “It was not possible to determine a general approach for the whole package that includes the reform of the electricity market design.” made its assessment.
Pointing out that there is a problem of expression regarding the application of contracts for difference to existing investments, Simson emphasized that time is needed to find a solution.
It provides a minimum income guarantee to investors in this field
The reform, which aims to expand low-carbon electricity generation and prevent the reoccurrence of the energy crisis, includes renewable energy and low-carbon nuclear power plants within the scope of “difference contracts”, providing a minimum income guarantee to investors in this field.Some countries, such as Poland, want thermal power plants to be included in the capacity mechanism, which includes subsidies paid to electricity generators, to ensure that sufficient generating capacity is kept on hold in case of outages.
Another group of countries, including Germany, Belgium and Luxembourg, oppose the coal subsidy on the grounds that it would undermine climate change targets.
Under the current system, the wholesale electricity price in the EU is determined by the final generator needed to meet the total electricity demand, and often by natural gas power plants that can be put into operation quickly.
During the energy crisis last year, the rapid rise in natural gas prices destabilized this market and raised electricity prices to record levels.
The reform aims to update this market.
In order for the planned electricity market reform to be implemented, it must be approved by the member states and the European Parliament (EP).