StollmeyerEU reports on a sighting of the EU’s energy ‘master plan’, due to be unveiled next week (July 15th):
The new framework is to deliver 3 market arrangements:
‘To move towards an interconnected EU-wide electricity market providing clear price signals for new investments and facilitating the further development of renewables;
To promote regional cooperation and coordination on energy policies, new generation, support schemes to renewables and interconnections;
To provide a truly European dimension to security of supply.’
Stollmeyer comments: All the talk about new renewables investment being driven by the market is useless unless the divestment issue is tackled head on. A market that doesn’t need new capacity investment (because of oversupply) won’t drive new investment in anything – renewables or otherwise. Considering how much new renewables investment is needed to reach EU’s 2020 and 2030 climate and energy targets, it is unclear how the market will drive that level of investment without a deliberate program of (early) retirement of existing resources, targeting those that do not add to the flexibility of the system or are incompatible with established environmental objectives. Perhaps the German ‘climate levy’ for old lignite-fired power plants can serve as an example of how to address the divestment issue.
Leaked document here.
Full report Leaked: draft EU Communication on New Electricity Market Design | @StollmeyerEU.
Get ready for the one-size-fits-all EU energy policy.