- Negotiations regarding proposal for Clean Energy Package for all Europeans suggested by the European Union have culminated with the European Parliament approving new electricity market design
- The parliament approved files will now head to the Council of Ministers for final stamp of approval
- These laws will allow consumers to have access to smart meters, price comparison tools, dynamic price contracts, etc., while ensuring framework for consumer protection
In December 2018, the European Union’s Minister Council approved 3 clean energy files that put member states on course to strive for a 32% of renewable energy share by 2030, while putting in place 32.5% energy efficiency target (see EU Sets Stage For 32% RE Target For 2030).
Now, the European Parliament has given its approval for the adoption of a new electricity market design proposal, which marks the completion of negotiations on the Clean Energy for All Europeans Package. To be specific, the parliament has approved the new Electricity market Regulation, Electricity market Directive, Regulations on Risk Preparedness and on the Agency for the Cooperation of Energy Regulators (ACER).
Approval to these regulations and directives places consumer at the centre of the clean energy transition as they get to play an active role in driving the energy transition which will lead to an energy system that’s less centralized and more digitalized and sustainable.
Consumers will have access to smart meters, price comparison tools, dynamic price contracts and citizens’ energy communities. It also puts in place a strong framework for consumer protection.
Among main points of the new rules are a phase out of capacity subsidies for power plants emitting more than 550 gr CO2/kWh, encouragement to cross-border electricity trade and competition to keep costs and prices in check. This new market design allows the EU region to have more renewable energy in its grid.
Miguel Arias Cañete, EU Commissioner for Climate Action and Energy, said, “Today’s approval of the new electricity market design will make energy markets more flexible and facilitate the integration of a greater share of renewable energy. An integrated EU energy market is the most cost-effective way to ensure secure and affordable supplies to all EU citizens. I am particularly pleased that we have agreed on a common framework for capacity mechanisms that will ensure such mechanisms will be in line with our climate objectives in the future while taking into account legitimate security of supply concerns.”
SolarPower Europe policy advisor Naomi Chevillard tweeted, “This is a bright & green future for the EU – new market design will empower small renewables and active consumers, open market for the participation of storage and aggregation.”
The next step is that the EU Council of Ministers formally approve the files, post which the new laws will be published in the Official Journal of the Union. These will then be implemented with effect from January 1, 2020.