EU negotiators reached an overnight compromise deal on the last remaining part of the Clean Energy Package, electricity market design. Negotiators from the European Parliament and the Council agreed that priority dispatch for existing renewables will continue to apply. For new renewables, in its place come fair and transparent rules on curtailment, including giving compensation for lost revenues in countries where re-dispatch is not market-based.
Transmission System Operators (TSOs) will also have to report on all re-dispatch actions. They will also have to follow recommendations from energy regulators on how to make re-dispatching more efficient and avoid the curtailment of renewables. This will help give transparency on any ‘must-run obligation’ agreements with conventional power plants that are crowding out renewables from the grid.
The European Commission has said that renewables will be 55% of Europe’s electricity demand by 2030 and 80% by 2050. And wind energy will become the number one source of power in Europe by 2027, according to the IEA.
WindEurope CEO Giles Dickson said: “It’s good that we’ve finally got a deal on the shape of Europe’s electricity market for the next decade. This deal is a good step forward for the energy transition in Europe. It will help make Europe’s electricity market ready for the ongoing expansion of renewables.”