A Look at the EU's Proposed Electricity Market Reform
MIN READMar 16, 2023 | 20:21 GMT
Transmission towers are seen in Antwerp, Belgium, on Feb. 7, 2023.
(Thierry Monasse/Getty Images)
The European Union's proposed electricity market reform seeks to reduce short-term price volatility for customers while boosting investments in renewables, avoiding major overhauls that would risk disrupting the market. On March 14, the European Commission presented its proposal for reforming the bloc's electricity market in an effort to reduce consumers' exposure to volatile natural gas prices and ensure that the ongoing increase in low-cost renewable electricity generation translates to lower energy bills. The commission's plan aims to increase renewable energy's competitiveness vis-a-vis gas, as well as incentivize the use of private long-term contracts between producers and consumers to shield the latter from severe spikes in natural gas prices like those experienced in 2022. It also seeks to encourage the development of innovative solutions in energy storage systems and demand response mechanisms that would help balance the electricity grid to more local, flexible renewable energy sources and reduce the need for...