EC launches consultation on power market reform

January 24 (Renewables Now) - The European Commission (EC) on Monday launched a public consultation on the reform of the bloc's power market design in an effort to ensure more affordable prices for consumers, and accelerate the green transition.

The Commission is seeking input on four main issues: reducing the dependence of electricity bills on short-term fossil fuels and integrating more renewables; ensuring security of supply and introducing alternatives to gas; enhancing consumer protection and empowerment, and improving market transparency, surveillance and integrity.

The debate will run until February 13 with the objective to support the EC in its work on a draft law for the power market reform that should be ready in the first quarter of 2023.

The structural reform of the EU electricity market design seeks to address two main issues -- securing energy independence in the wake of the war in Ukraine and achieving climate neutrality and the goals set in the REPowerEU plan.

Commenting on the plan, EU Commissioner for Energy Kadri Simson said: "[...] The unprecedented energy crisis we are facing shows that we need to make the electricity market design fit for the future, allowing it to deliver the benefits of affordable clean energy to everyone. I look forward to the contributions from a wide variety of stakeholders, which will help guide our legislative proposal this year".

The Spanish government recently sent its draft proposal for the reform to the EC, endorsing contracts-for-difference (CfDs) for renewables and capacity contracts for gas-fired power generation. According to a report by Bloomberg, France is supporting Spain's plan.