The main executive directors of the European electricity companies grouped under the Eurelectric employers’ association met yesterday with the Commissioner for Energy of the European Union (EU), Kadri Simson, and with the third vice president of the Government and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera to convey to the community authorities her proposals for the negotiation of the electricity market reform that will be addressed today and tomorrow at the Valladolid summit.
The large electric companies want to convey the need for Europe to be aware that in order to ensure the energy transition objectives and the desired security of supply, it will need to deploy a “huge amount” of renewable energy plants, heat pumps and electric vehicles that will demand an electrical network sized for those needs.
“Market reform is especially key, since statistics show that we need to double the levels of investment both in generation and in networks by 2040,” the European employers’ association said in a statement in which it claims to triple the investment in current networks until guaranteeing a minimum investment of 69,000 million euros per year in 2050.
In order for the private sector to collaborate in the financing needs, it is necessary, according to the electrical employers’ association, to improve the long-term contracting instruments (Power Purchase Agreement, PPA) and CFD coverage, the latter of a voluntary nature. This provides investors with long-term visibility and guarantees protection for consumers against price volatility.
Euroelectric also calls for an end to emergency measures and price caps implemented in response to the crisis following the invasion of Ukraine, and to establish more flexible financial rules that allow liquidity for market participants.
At the same time, they consider it necessary to put an end to the general requirement for coverage of electricity resellers and to guarantee their resilience with financial stress tests.
The European electricity employer has indicated in a statement that for Europe to meet the objectives set for 2030, “urgent action is required, since there are less than seven years left for the stipulated date and success in the agreed objectives will require protecting the investor confidence, moving forward with determination in electricity generation and networks, as well as defending competitiveness and modernizing networks to optimally manage more and more connections”.