A profound revision of state intervention policies and a fully-fledged investigation into a new market design are necessary as the share of variable generation continues to grow, EURELECTRIC has said in its responseto the Commission's Communication on state intervention, published today.
EURELECTRIC generally welcomed the Commission's initiative to foster a European, market-based approach aimed at promoting growth of renewables in a more cost-efficient and sustainable way, facilitating demand side participation in the market, and ensuring generation adequacy and energy supply at competitive prices.
'We must continue our efforts to promote a well-functioning integrated European electricity market supported by a meaningful CO2 price that can drive low carbon investments. As a priority, Europe should urgently integrate renewables into the market by imposing balancing obligations on renewables generation and by moving to more pro-market renewables support schemes. Moving towards 2020 and beyond, policymakers should make progress on phasing out all energy sector subsidies and limiting support to immature technologies in their research, development and demonstrationphase. Existing commitments directly related to the support renewables must be respected until the foreseen time horizon,'commented Hans ten Berge, the Secretary General of EURELECTRIC.
Mr ten Berge also called for a holistic approach to assessing the needs for flexibility and capacity, both of which are important to ensure continued generation adequacy and the secure and smooth functioning of the electricity system in the future. 'Remunerating capacity should be acknowledged as an increasingly important element of the future market design needed in a system dominated by renewables, while flexibility services should be remunerated through integrated and well-functioning day-ahead, intraday and balancing markets,' he argued.
Mr ten Berge also reiterated EURELECTRIC's views that when introduced, capacity remuneration mechanisms must be market-based, technology-neutral, non-discriminatory and open for cross-border participation. 'The Commission should set up a proper governance process to coordinate various capacity remuneration projects and ensure their convergence in a longer term', he concluded.
(eurelectric.org, 17 Jan., 2014)
