WindEurope and the chemical industry representative body Cefic have written to the European Commission calling for electricity markets to support investments in renewables
In an open letter ahead of the upcoming Electricity Market Reform, the pair argue that the “sustainability, security, and competitiveness of Europe’s electricity system design need to go hand in hand and serve the competitiveness of EU’s industry”.
They also say that accelerating the deployment of new, and the strengthening of, electricity grids is an absolute priority.
In addition, short-term wholesale markets should remain the main mechanism for ensuring cost efficient power plant dispatch and settlement of electricity market contracts in day-ahead and intra-day markets.
Furthermore, long-term contracts between electricity producers and consumers should be promoted.
Finally, they recommend that market-based solutions should be promoted in response to increasing shares of variable renewable energy supplies requiring more demand flexibility next to better storage or exchange to other energy carriers.
System adequacy should first be addressed “within the market”, by clearly defining roles and responsibilities for market participants and energy carriers, in a EU-wide approach, the letter concluded.
Director general of Cefic Marco Mensink said: “Electrically heated steam cracker, electrolysers, heat pumps: many of the technologies that we need to create a carbon-neutral chemical industry depend on the access to abundant and cheap renewable energy.
“This is why the chemicals industry joins wind energy producers in a call for a fully integrated and future proof electricity market.
“Short-term measures to solve the current energy crisis and increase availability of supply are important but they are not enough.
“Only thought-through long-term EU electricity market design can deliver a strong, sustainable and competitive Europe.”
Giles Dickson, WindEurope chief executive (pictured) added: “Europe is moving towards a decarbonised energy system with very high shares of renewables.
“The current energy crisis will only reinforce and accelerate this process. Europe’s chemicals industry and other energy-intensive sectors want to decarbonise their production processes – and invest in renewables-based electrification and renewable hydrogen.
“They agree with the wind industry that we need a long-term EU electricity market design that unlocks and supports these much-needed investments. A patchwork of national emergency measures will not do.”