European trade bodies decry 'distorting' interventionist energy policy, call for accelerated renewables rollout

• The heads of five major energy trade bodies in Europe have written to the European Union and also member states prompting them not to alter the present power price establishing system in light of the continent's energy crisis as well as rather pursue greater renewables rollout.

They have actually contacted the trade bloc as well as its participant mentions to shift away from fossil fuels, purchase clean energy alternatives, increase energy cost savings and also unlock need response, while preventing changes to the existing electricity price setting device.

" Temporary interventionist measures such as wholesale or retail price caps should be avoided," said the letter. "Such measures impair the capacity of the energy market to provide a reliable as well as secure supply/demand balance in the spot market, boosting the cost of the energy transition."

The letter claimed European electricity markets have "proven very reliable in making sure a secure electricity supply to consumers, while supplying rewards for clean investments" during the area's energy crisis, adding that onward markets have "sent an effective signal for investments in renewable energy, energy storage space and also consumer-driven solutions, consisting of by way of Power Purchase Agreements (PPA) as well as long-term hedging."

The signatories - Mark Copley, CEO of the European Federation of Energy Traders (EFET); Kristian Ruby, secretary general of Eurelectric; Christian Baer, assistant general of Europex; Walburga Hemetsberger, Chief Executive Officer of SolarPower Europe; and Giles Dickson, chief executive officer WindEurope-- wrote to Ursula von der Leyen, president of the European Commission (EC) and other EC heavyweights as well as European presidents and also energy ministers.

They noted how, in the short-term, measures to secure customers from unstable energy prices were required however stated that direct assistance measures targeting vulnerable consumers was the "most cost-effective as well as the very least distortive method to satisfy the EU's objective of clean energy freedom".

Signatories likewise suggested that "protecting market signals and also guaranteeing investor certainty is vital to transport the required volumes of exclusive investments right into renewable energy, carbon-neutral energy supply and also infrastructure."

"Any type of market treatments on electricity wholesale markets would not address the origin problem of the existing circumstance-- an overreliance on imported gas-- and would fundamentally misshape dispatch and also investment signals indispensable to dealing with the crisis," the trade bodies said.

The heads of the trade bodies said Europe's energy market was "prepared to place its experience and also practical expertise to the service of decision makers" but that it "wants the European Union to lead the resolution of this crisis circumstance".

They contacted the EC and all member states to make certain that "such input is taken into due account in future decisions", while additionally criticising the decision by some nations to intervene in their domestic energy markets.

Individual decisions, such as the joint Spanish and also Portuguese proposition of lowering Iberian electricity prices to an optimum of EUR30/MWh (US$ 33/MWh), are "the worst choice to take as they unravel the Internal Energy Market and also run the risk of fracturing a solid, united European reaction," the letter claimed.