On Tuesday, the Ministers of Energy from the European Union had a first exchange of positions regarding the proposal for the reform of the electricity market and the proposed measures meet Romania’s objectives, according to the Minister of Energy, Virgil Popescu.
He attended on Tuesday the meeting of the Energy Council organized in Brussels, as well as in a series of meetings with counterparts from other member states.
“We had a first exchange of positions regarding the new legislative proposal of the European Commission for the reform of the electricity market. During previous meetings, we supported a substantial reform of the energy market that would lead to limiting the contagion effect of gas prices natural effects on electricity prices. The proposed measures, such as the creation of the framework for stimulating investments in new electricity production capacities through financial instruments (power purchase agreements/PPA, contracts for difference/CfD), with application to energy sources renewables, including hydro and nuclear and protecting consumers through the possibility of setting regulated prices in energy crisis situations meet Romania’s objectives,” the minister wrote on his Facebook page, according to Agerpres.
He stated that, during the discussions, he supported the granting of additional flexibilities for the use of revenues collected from the application of contracts for difference, the application of guarantees related to PPAs and for energy sources other than renewable energy (such as for nuclear) and a greater involvement of the member states in the process of triggering a state of crisis (regional or European) of high energy prices, if market conditions require it.
“The legislative proposal will be negotiated at the level of the Council in order to reach an agreement on the text at the end of 2023,” Popescu said.
The meeting of the Energy Council included on the agenda important debates regarding the reform of the electricity market, the preparation for the winter 2023-2024 and the adoption of some legislative acts, namely the package for the natural gas and hydrogen market (Regulation and Directive) and the extension of the period of application of the Council Regulation regarding coordinated measures to reduce natural gas consumption.
The Minister of Energy also participated in a meeting of the pro-nuclear Member States, where the discussions focused on ensuring competitive financing conditions for nuclear projects at the EU level from both public and private funds, the development of the necessary skills for the nuclear field, promoting innovative technologies such as small modular reactors (SMR).
“Romania is firmly committed to the completion of nuclear projects with a strategic role at the national level, as a key element of the decarbonization and energy independence strategy,” Virgil Popescu pointed out.
Within the Council, the ministers reached a general approach on the package for the natural gas and hydrogen market. The Directive and the Regulation establish the framework for the conditions for the organization of natural gas and hydrogen producers, the development of cross-border flows between Member States, the gas-hydrogen mixture, tariffs and other regulatory aspects.
“The package for gas and hydrogen, in its updated form, ensures the incentives for the development of the hydrogen market in the EU, with an emphasis on renewable hydrogen and that from sources with low carbon emissions. In the margins of the discussions, we supported the application of the principle of technological neutrality and an inclusion as wider use of sources with low carbon emissions in EU energy policies, as an important contributor to the decarbonisation of the European economy,” added the Minister of Energy.