As WindEurope points out in their position paper – governments must help citizens and businesses cope with very high energy prices. This is especially important in the context of up to 10-fold increases in energy prices over the past year, which was caused by the high price of gas. This is a direct result of Russia’s war in Ukraine and the Kremlin’s use of gas supplies to Europe for political purposes.
On September 9, EU energy ministers will discuss options for emergency measures to deal with high gas and electricity prices.
Renewable energy sources are the cheapest and fastest way to reduce Europe’s dependence on fossil fuel imports. Current energy crisis shows that we need more RES as soon as possible. It is the centerpiece of Europe’s new energy strategy, REPowerEU. So any measures on energy prices and markets must ensure that investing in renewables continues to make sense.
Measures for windfall income of energy producers should be aimed only at actual profits. Most wind farms do not earn the wholesale price of electricity. They receive a fixed price for the electricity they produce – under a government-backed support system, under a Power Purchase Agreement (PPA) with an industrial customer, or they hedge their revenues against fluctuations in the wholesale market – so they don’t earn higher prices. Wind farms that have recurring revenues should not be subject to emergency measures.
Emergency measures should be limited in time. And long-term reforms to the design of the electricity market should be undertaken in full consultation with the industry.
Demand reduction and demand response measures will be crucial to solving the current crisis.
Source : WindEurope
