SolarPower Europe has issued the following statement on the widely reported REV6 of the compromise draft on the EU Electricity Market Revision.
The text proposes an exception to the CO2 threshold of capacity renumeration mechanisms (CRMs) for existing energy generation capacities started before 2019. This means CRMs – which ultimately come from consumers - could now be used to finance coal.
Naomi Chevillard, Head of Regulatory Affairs at SolarPower Europe said (she/her):
“Today’s revision of the electricity market design puts coal back on the table.
It’s self-evident that this poses significant climate risk.
The proposal also endangers Europe’s energy security efforts. Over half of the EU’s hard coal came from Russia in 2020.
Coal is the old world. Europe should follow its international partners & focus on the energy economy of tomorrow.
Our political will, and financing must go to deploying clean flexibility – that’s demand response, and energy storage.”
Notes
- Capacity remuneration mechanisms (CRM) were introduced in 2018, under previous revisions to the EU Electricity Market Design, to renumerate energy assets that have the capacity to be available on demand, for example in Germany to compensate for network congestion, in France to compensate for the high electricity needs in winter.
- When CRM were introduced, they came with an emissions performance standard – a CO2 emission limit – i.e. it excluded coal and only financed gas or nuclear.
- Information on coal sourcing via Bruegel.
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.
Read now
Questions? Get in touch.
Bethany Meban
Head of Press & Policy Communications
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