In the early morning on Wednesday, the 14^th of December, the Council and the European Parliament reached a provisional agreement to reform the EU’s electricity market design (EMD). This reform aimed to address Europe’s energy price crisis, move towards a long-term market structure and diversify away from fossil fuels. 

The text emphasises long-term contracts like Power Purchase Agreements (PPA) and Contracts-for-Differences(CfD) to boost the integration of renewable energy into our systems. The reform’s fundamental aim was safeguarding consumers from steep energy prices. While positive steps, such as the ban on power cuts, were taken, there’s room for further actions to enhance consumer protection. 

This reform acknowledges the crucial role the grid will play in optimising the integration of renewables in the European power mix. The provisions mentioning capital and operational expenses in grid tariffs, the emphasis on anticipatory investments, and flexible grid connection agreements are clearly steps in the right direction. The features in the EMD should now be supported by promptly putting into action the measures outlined in the EU Action Plan for Grids. 

Read the full press release here:

• EMD PR 181223 (pdf)