EU energy ministers have today agreed to cap revenues earned by renewable generators to €180/MWh.
The move comes as an effort to “collect and redistribute the energy sector’s surplus revenues to final customers”, the European Council said.
It added the level of the cap has been designed to preserve the profitability of the operators and avoid hindering investments in renewable energies.
The mandatory limit on revenue will be introduced on 1 December 2022 and apply through to 30 June 2023.
“We live in exceptional times and are working in an exceptionally fast, coordinated and solidary manner to form a united front against Russia’s continuous weaponising of energy supplies,” said Czech minister of industry and trade Jozef Síkela.
“The agreement reached today will bring relief to European citizens and companies. Member states will flatten the curve of electricity demand during peak hours, which will have a direct positive effect on prices.
“Member states will redistribute surplus profits from the energy sector to those who are struggling to pay their bills.”
EU member states agreed to use measures of their choice to collect and redirect the surplus revenues towards supporting and protecting final electricity customers.
They introduced some flexibilities to reflect their national circumstances and the measures in place at national level.
These include the possibility to set a higher revenue cap, use measures that further limit market revenues, differentiate between technologies, and to apply limits to market revenues of other actors including traders.