WindEurope has warned that new emergency EU regulations in response to the energy crisis could put many renewables investments on hold.
EU energy ministers are convening today to decide on a package of emergency regulations aimed at curbing rising electricity prices and to coordinate members’ responses.
Measures currently being discussed are reducing peak electricity consumption, putting a cap on energy market revenues and taxing corporate windfall profits.
In addition, the energy ministers will discuss plans to introduce an EU-wide cap on all infra-marginal power generation.
However, WindEurope has said that the regulation does nothing to stop national governments from adopting additional taxes and taking uncoordinated measures on different types of power generation.
Some national governments are already planning new taxes that would come on top of the emergency EU measures. And these additional measures include taxes on electricity producers’ total revenues, rather than their profits.
This, the group warns, will drive investors to other markets, such as the US, where the Inflation Reduction Act has big tax credits for renewables investments.
“The message to national governments is simple: deviating from the EU-wide cap or applying additional taxes on electricity producers will stop renewables investments. And make it that much harder for Europe to get out of the energy crisis,” a WindEurope statement reads.