Windfall taxes on energy companies and other emergency measures should target real profits only and support investment in renewables, according to WindEurope.
As the energy crisis in Europe deepens, WindEurope said emergency measures on electricity markets should be temporary, with any measures targeting “actual profits” only, while supporting increased investment in renewables.
Governments need to help citizens and businesses deal with very high energy prices, the trade group added.
On 9 September EU Energy Ministers will discuss a range of options for emergency measures to deal with high gas and electricity prices.
Renewables are the cheapest and fastest way to reduce Europe’s dependence on fossil fuel imports.
WindEurope stated: “The current energy crisis shows we need more renewables ASAP.
“That is central to Europe’s new energy strategy, REPowerEU.
“So any measures on energy prices and markets need to ensure it still makes sense to invest in renewables.”
Most wind farms are not earning the wholesale electricity price and receive a fixed price for the electricity they produce, either from a government-backed support scheme or a PPA with an industrial consumer.
Generators can also hedge their revenues against fluctuations in the wholesale market, so they don’t earn the upside from higher prices.
Wind farms that are on fixed revenues should not be subject to windfall tax measures, WindEurope stated.