L R AS Published on Sunday 18 September 2022 - n° 416 - Categories:Europe
The Commission's measures according to PV Magazine and SolarPower Europe
Warning The following is a list of articles published by various media outlets because, on the one hand, none of them seemed to us to be exhaustive and, on the other, the understanding of the "inframarginal" mechanism seemed to us to be unclear. We have avoided going into too much detail in these articles, because the authors also seemed to have little understanding of the mechanism.
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Commission President announces compulsory reduction in electricity consumption
by at least 5% during peak hours. Member States will be required to identify the 10% of hours when the expected price is highest and to reduce demand during these peak hours. They will also have to reduce overall electricity demand by at least 10% by 31 March 2023.
See also: The Commission's measures according to Rystad Energy
Rystad Energy does not believe in the Commission's levy base
The price limit above which there would be a superprofit
The Commission is proposing to set at €0.18/kWh or €180 per MWh the price level for solar and wind energy at which producers are deemed to have benefited from high gas prices.
This proposal is expected to save €142 billion, which will be used to reduce energy consumers' bills.
Member States have the option of introducing other caps, without the approval of the European Commission.
See also: The Commission's measures according to PV Tech
According to SolarPower Europe's initial reading of the proposal, the cap applies to revenues from all markets, including bilateral transactions, long-term markets and short-term markets. The cap can be set at the time of energy settlement or after.
This should protect power purchase agreements (PPAs) from these measures, unless it is set below the €0.18/kWh proposed by the Commission. Feed-in tariffs, contracts for difference and renewable power purchase agreements entered into by companies are all protected by the cap. The cap also does not apply to flexibility resources such as storage and demand response. Demonstration projects and installations with a capacity of less than 20 kW are also excluded.
The revenue cap has been classified as an emergency and temporary measure. It still has to be approved at an extraordinary Council meeting on 30 September.
In the wake of soaring prices, the Commission will be looking to change the requirements for guarantees to participate in market trading
The Commission wants to reform electricity pricing, which is based on the cost of the last kilowatt needed to meet demand. It wants consumers to reap the benefits of low-cost renewable energies.
https://www.pv-magazine.com/2022/09/14/eu-proposing-e0-18-kwh-price-cap-on-solar-wind/
PV Magazine of 14 September 2022
