- It will strengthen the internal energy market, as well as the role of the European Commission and the European Council in designing joint policies.
The Foro Industria y Energía has positively assessed the common agreement reached by the European Council for the reform of the electricity market, pending the necessary legislative process for its implementation. This agreement enhances the role of the European Commission in shaping joint energy policies, which was one of the needs emphasized by the participants at FIE2023. “It is very important for Europe to move forward united and in consensus toward energy sovereignty,” says Albert Concepción, Director of Foro Industria y Energía.
Javier Santacruz, an analyst from FIE, regards the agreement as positive because “it strengthens the internal energy market, as well as the role of the European Commission and the European Council in establishing rules that ensure equality among European countries in energy matters. It’s a well-balanced agreement where all parties benefit.”
The agreement “provides a secure framework for companies that want to invest in the sector,” Santacruz adds. Pending the specific details that the legislative development of the agreement will bring, the main principles known so far strengthen the role of private Power Purchase Agreements (PPAs) and Contract for Difference (CFD) agreements.
The latter will allow member states to procure energy from technologies such as nuclear, hydro, and cogeneration to ensure supply security. Additionally, the agreement intends to promote capacity mechanisms focused on energy storage, which are essential for the development of renewable energies.