MEPs of the ITRE Committee have now established the Parliament’s official view on the Electricity Market Design and have given the rapporteur green light to go into interinstitutional negotiations.
Once the Energy Council agrees its general approach, the institutions will then enter into trilogue negotiations before the law’s official adoption.
Naomi Chevillard, Head of Regulatory Affairs at SolarPower Europe said (she/her):
’‘Today we breathe a sigh of relief as MEPs have decided to not make market revenue caps a structural feature of the electricity market. They have recognised the hugely negative impact of the caps on renewable energy growth – resulting in a contraction of the Power Purchase Agreements (PPA) market by 21% in 2022 due to regulatory uncertainty.
This vote sends a powerful signal to the EU capitals, as the Energy Council works to agree its own position. EU institutions must now complete negotiations to ensure a fast adoption of the text, which also contains positive proposals for the growth of PPAs, rooftop PV and grid integration of solar.’‘
The report of the EP on the revision of the Electricity Market Design give the right rules to boost solar PV investment, by establishing Contracts for Difference, or equivalent schemes, as the form of direct support to solar PV and by taking supportive measures for Power Purchase Agreements.
The report also enshrines a right for consumers to share energy and lays down the necessary ‘who-does-what’framework – allowing to improve the business model for solar rooftops while supporting grid integration of solar energy.
It creates a right for consumers to obtain a flexible grid connection offer, for example a grid connection with a cap on import or exports for cases where the alternative would be no connection.
It also significantly modernises the grid integration and flexibility framework – by creating an EU-level assessment of flexibility needs. This would enable grid operators to invest into the necessary grid infrastructures in anticipation of renewable and EV development, and require grid operators to publish information on the grid capacity available on their network.
Notes
- PPA data via Pexapark
SolarPower Europe Position Paper on Electricity Market Design
All routes to market for solar PV investments preserved. Maintaining of marginal pricing system. Market revenue caps no longer prolonged.
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Bethany Meban
Head of Press & Policy Communications
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