NEWS

EU Energy Ministers Reach Agreement on Power Market Reforms

18/10/2023

EU energy ministers have reached an agreement to modify the design of the EU’s electricity market (EMD). They highlight the expansion of two-way contracts for difference (CfDs) to include nuclear power, in addition to wind, solar, geothermal, and hydropower without reservoirs.

The move aims to ensure a level playing field for various energy sources and maintain the EU’s single market integrity. Member states have the flexibility to invest in and extend the life cycle of their nuclear facilities. This inclusive approach promotes a balanced energy market while benefiting consumers.

Member states went under intense discussions with regards to the application of this proposal. The potentially agreed text, which may come into effect after a three-year transition period, also includes a derogation from CO2 emission limits for capacity mechanisms until December 31, 2028. These developments aim to address price concerns and geopolitical tensions, while safeguarding vulnerable households and limiting excessive revenues from various generators. Talks with the European Parliament on the final legal text are expected to commence soon.