On Tuesday, the 14th of March, the European Commission (EC) proposed reforming the European Union’s electricity market model, as noted by EC’s press office.
It is planned to significantly speed up generation of renewable energy resources and gradually stop using gas. This is expected to make residents’ bills less dependent on fluctuating fossil fuel prices.
This should make consumers better protected against rapid price surges and possible market manipulations, whereas «EU’s industrial sector would become cleaner and more competitive».
The proposed reform also provides for reviewing of multiple EU legislative acts, specifically the Electricity Regulation, Electricity Directive and REMIT Regulation. Measures are planned to stimulate longer-term contacts for generation of non-fossil fuel electricity and introduce cleaner and more flexible solutions to the system in order to better compete with gas.
EC believes the aforementioned measures will help reduce the influence of fossil fuel on consumers’ electricity bills, as well as ensure they reflect the lowest possible renewable energy resource costs.
The proposed reform would promote transparent and fair competition in Europe, as well as improve market transparency and integrity.
EC notes that renewable energy-based energy system will not only help reduce bills for consumers but will also ensure a sustainable energy supply in Europe in accordance with the Green Course and REPowerEU plan.
The EC’s public statement mentioned that this is part of the Green Course’s industrial plan. It will also provide EU’s industry access to renewable, non-fossil and economical energy, which is highly important for decarbonisation and green reformation factor. For Europe to accomplish energy and climate goals, EC explains, it is necessary to triple generation of renewable energy by the end of the decade.
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