Micro-generators lament 'insurmountable' barriers to EU energy market

Refuting claims that liberalisation and decentralisation lead directly to price increases, the Commission in a 1 July press release said that: "It must be recalled that energy prices cannot be expected to always remain low regardless of external factors. Nonetheless, competitive and open markets will bring the best prices to end users, including the energy-intensive industry."

Greenpeace  is  clearly in favour of decentralisation: "What is essential now...is that there is enough joined-up thinking by the various public authorities to make decentralised energy production grow swiftly enough so that our 2020 climate and other targets are met on time." The NGO also believes that "moves away from inefficient centralised power generation, where most actual energy is thrown away, will in future become the norm. It's a process being driven already by fuel scarcity, by upward prices and by other environmental constraints such as emission caps."

Antoine Pellion, a civil engineer at the Ecole des Mines in Paris, said: "Behind the promotion of decentralised generation, is the issue of an optimal generation park that meets the actual European requirements: preservation of the public service, reduction of fuel consumption to afford energy supply security and reduction of emissions. This could hardly be compatible with lower electricity price on long term." 

ERGEG, the European Regulators Group for Electricity and Gas, "acknowledges the work of the two EU collaborative projects - ELEP and DG-GRID - in identifying the barriers to Distributed Generation.  During the 4th November 2006 blackout, the tripping of a large amount of distributed generation, mainly wind and CHP, worsened the power disruption.  ERGEG's (February 2007) report on the blackout includes a number of recommendations including harmonised connection rules for distributed generation, and better control at least during disturbances and abnormal operation of the power system.  Regulators are currently setting out the priorities for their 2008 work programme.  In consultation with the European Commission, the European regulators will reflect carefully on the treatment of distributed generation."