The European Union must reach a final agreement on its new electricity market arrangement by the end of this year.
The European Parliament’s Energy Committee welcomes the wider use of contracts for differences (CFDs) in the development of renewable energy. 55 MPs of the Industry, Research and Energy Committee (ITRE) have supported the EU’s electricity market reforms, 15 voted against them and two abstained from voting.
The European Parliament’s Energy Committee has instructed the EU Commission to establish a marketplace for power purchase agreements by the end of 2024. They also spoke in favor of allowing “non-fossil flexibility” to stabilize electricity grids, as well as demand-side flexibility for things like solar-related residential storage systems. This can help balance the electricity grid, reduce price volatility and allow consumers to adjust their energy consumption according to prices and needs.
“This vote sends a strong signal to EU capitals as the Energy Council seeks to agree its own position,” said Naomi Chevillard, Head of Regulatory Affairs at SolarPower Europe. “The EU institutions must now complete the negotiations to ensure the rapid adoption of the text. The text also contains positive proposals on the growth of power purchase agreements, rooftop electricity and grid integration of solar energy.”