Decarbonization of the European power market needed
The European Union's electricity market must become more flexible, secure and sustainable to put Europe on track for the energy transition. Avoiding that State aid, in the form of capacity mechanisms, ends up incentivising the most polluting and less flexible power plants is central to meeting this goal.
Make Power Clean Initiative
The new "Make Power Clean" initiative strongly supports the European Commission's proposal for a carbon eligibility criterion in the Regulation on the Internal Market for Electricity: it is a most needed step in the right direction. We call on the Council and the European Parliament to endorse the 550g CO2/kWh carbon criterion, which is critical to the overall consistency and efficiency of EU climate and energy policy.
550g CO2/kWh carbon criterion
Additional aid for higher CO2 emitting power plants should not be extended, given that cleaner supply alternatives are available now. This would go against the best interest of European citizens. As proposed by the European Commission, making the eligibility for capacity mechanisms conditional to a 550g CO2/kWh carbon criterion is transparent and in line with the European Investment Bank's investment lending policy.
The carbon criterion is consistent with Europe's 2030 decarbonisation goal and supports the effectiveness of the EU Emission Trading Scheme (ETS). The ongoing ETS reform is critical to deliver a meaningful carbon price signal to drive the switch towards lower carbon power generation. The carbon criterion ensures that capacity mechanisms do not contradict the low carbon incentives delivered by the ETS.
The "Make Power Clean" initiative currently includes thirteen leading companies and associations committed to providing solutions to deliver the energy transition and move forward to a low-carbon economy. ENI, ESIA, Eurogas, Gas Natural Fenosa, IBERDROLA, Nordex/Acciona Windpower, Shell, SNAM, Siemens, SolarPower Europe, Statoil, Total and WindEurope join together to support the 550 criterion. (HCN)
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