We explain to you why the EU wants to reform the European electricity market, the price of which depends on the price of gas

We clarify to you why the EU desires to reform the European electrical energy market, the value of which is determined by the value of gasoline

How will electrical energy costs be decided within the European Union in a number of years? The query, each technically and politically, is of concern to the 27 nations at a time of an vitality disaster affecting all of its members. Ursula von der Leyen introduced on Monday August 29 from Slovenia a Emergency intervention and structural reform of the electrical energy market. For the President of the European Fee, “The rise in electrical energy costs clearly exhibits the boundaries of the present efficiency of the market.”.

>> Power Disaster: compensate for the newest data dwell

The reform, known as for by Ursula von der Leyen, shall be on the record of a gathering of EU vitality ministers on Friday 9 September in Brussels (Belgium). A heated dialogue is anticipated between the varied Member States. How does the European electrical energy market work? What’s the envisaged reform? Franceinfo is assessing a small revolution that Europe could make to restrict the results of the warfare in Ukraine.

The value of electrical energy explodes as a result of it’s linked to the value of gasoline

The wholesale electrical energy market was designed within the Nineties on the idea of the next mechanism: it’s the value value of the final supply of manufacturing that’s mobilized to stability provide and demand for electrical energy, and energy plant gasoline usually, and it’s the value charged to all operators. In different phrases, po Balancing electrical energy provide and demand, we’re all in favour of the associated fee wanted to provide a further megawatt-hour (MWh), with a view to meet the rising demand. That is known as marginal value. Nonetheless, it’s the gas-fired thermal energy vegetation that must be mobilized when demand is excessive. For this reason the value of electrical energy is expounded to the value of gasoline.

Within the context earlier than the scarcity of Russian gasoline, the value of electrical energy from gasoline was very low. Subsequently, the value of electrical energy itself was quite low. Renewable energies have been capable of benefit from this technique of improvement with out their value, as they have been initially too excessive, which slowed their rise in energy.

Any further, renewable energies produce electrical energy at a low value, whereas the value of gasoline has risen resulting from a lower in Russian shipments. Thus, electrical energy costs, largely associated to gasoline, rose: on the finish of August, the supply value at the start of 2023 reached 950 euros per megawatt-hour in Germany. In France, the €1,000 restrict has been crossed, in opposition to a median of €85 on the finish of summer time 2021.

Many nations, together with Germany, lately determined to reform

France has been calling for reform of a system that has been in jail for a 12 months “Outdated” This prevents French shoppers from taking full benefit of the decrease prices that nuclear energy brings. In Spain, the federal government can also be complaining about having to pay costs consistent with gasoline whereas the nation has invested closely in renewable energies.

Dozens of nations within the north of the European Union, reminiscent of Germany, have been nonetheless against any reform, within the fall of 2021. They’ve since turned to it. market “It can’t be described as practical if it results in such excessive costs.”lately criticized German Chancellor Olaf Schulz.

A number of methods to repair are talked about

Apart from Spain and Portugal, that are approved to impose a cap on vitality costs resulting from their poor connections to European networks, EU nations are at the moment certain by the principles of this European market.

Right now, some ways to reform the European electrical energy market are being mentioned. First, nations like France and Austria are calling for decoupling, that’s, a pressured separation of the value of electrical energy from the value of gasoline. This might, for instance, permit French shoppers to profit from low cost electrical energy because of nuclear energy, even when 32 of the present 56 French reactors have been closed.

The Czech Republic, which holds the rotating presidency of the European Union, proposes “Most gasoline value for electrical energy manufacturing”Whereas Belgium claims quite “value freeze” Electrical energy.

The controversy throughout the EU might final a number of months

That is the place the shoe pinches. Restore is not going to be By defaultIn keeping with what was quoted by Agence France-Presse on the European diplomat. The committee ought to begin learning the impression within the fall, and we will hope to make a proposal early subsequent 12 months.”, in line with him. dialogue “It’s going to final a number of months, as much as two years if legislative proposals are submitted.”Nicholas Bergmans, an skilled ininstitute for sustainable improvement and worldwide relationsEdri), quoted by Agence France-Presse.

Leave a Comment

Your email address will not be published.