EU Electricity Market: Integration and flexibility needed

The Renew Europe Group welcomed this week's proposals by the European Commission on the EU internal electricity market design, which aims to tackle shortcomings of the EU energy market in the wake of the supply shock following the outbreak of war in Ukraine. In the current energy crisis, existing instruments to protect industries, SMEs and vulnerable households against volatile and unrelenting high prices have hit their limit.

As part of this reform, Renew Europe calls for more flexibility in the electricity grid, as well as truly European, future-proof energy system integration, based on diverse energy infrastructure projects, especially cross-border projects that produce, store, and distribute energy efficiently. To ensure that this transformation unfolds rapidly, all regulatory obstacles must be removed and private capital mobilised, so energy systems of EU countries can benefit from accelerated permitting procedures and funding.

Moreover, Renew Europe advocates for the rights of consumers to a wider choice of fixed-rate contracts and for better, more secure supply conditions, as well as measures to counteract short-term price peaks through power purchase agreements for companies and SMEs. Finally, renewables, energy efficiency and energy infrastructure must also play a key role in achieving these objectives in the long-term, while enabling progress towards European energy sovereignty and the net-zero economy.

Morten Helveg Petersen MEP(Radikale Venstre, DK), Vice-Chair of the European Parliament Committee on Industry, Research and Energy (ITRE), said:

"We still don't have an internal market for energy, and there is a long way to go before cheap, green electricity can flow freely across Europe's border. We need to quickly boost the integration of renewables in our energy systems and use this platform to set us free from Putin's gas. We will put importance on creating energy security and price stability for European citizens and businesses, as well as security for the investors waiting to invest in Europe's promising renewable energy potential."