EU’s Clean Energy Package: Are we on the right track?

In November 2016, the European Commission presented eight legislative proposals as part of its “Clean Energy for All Europeans” package. Two of those cover the Electricity Market Design, with the goal of making it more consumer-oriented, competitive, flexible and innovative.

Discussion of the package is also focused on the level of ambition, in particular RES and Energy Efficiency targets. Environmental organisations count on the European Parliament to support more ambitious targets. Given that Member States lean towards less restrictive measures, the scene is set for tense negotiations with Parliament.

The European electricity market is currently undergoing structural challenges to security of supply, due to lack of capacity and funding restraints. New investments are insufficient to bridge the gap. It raises several questions about the future of capacity mechanisms in the EU – how should they be designed not only to ensure security of supply whilst preserving competition in the Single Market, but also to support market reforms, RES integrations, promotion of demand response.

More than a year after the publication of the Clean Energy Package by the Commission, EURACTIV hosted a forum to discuss the state-of-play and future of the power industry in the EU. Questions included:
– What is the way forward for the Clean Energy Package?
– What should be the focus of upcoming EU Presidencies regarding the Package?
– Can European power markets exist without capacity mechanisms? How they should be designed?

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