The European Union is planning to decouple market prices for renewables and gas as part of a revamp of the bloc’s energy policy.
The Financial Times reported today that Brussels wants to prioritise cheaper green power, which would upend the current system that sees the final generator – generally fossil fuels – set the market rate.
The move would be part of the EU’s efforts to bring down energy bills but would face opposition from the renewables sector, according to the newspaper.
The current system, known as the merit order, has underpinned investment in green projects as they benefit from higher prices, said the FT.
EU energy commissioner Kadri Simson (pictured) told the newspaper there is strong political pressure to redesign the market.
She added the Commission is working to deliver reforms faster than it usually would given the extraordinary circumstances.
A consultation is due shortly and the EU will set out a full proposal by the end of March, according to the report.