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EPIA Press Briefing on European Commission's package on public intervention in the electricity sector

(PresseBox) (Brussels, ) Today, the European Commission published a new communication entitled "Delivering the internal electricity market and making the most of public intervention", which is accompanied by a series of annexes. This so-called "guidance package" aims to provide support to Member States in four areas:

- The design of renewable energy support schemes
- The use of renewable energy cooperation mechanisms
- The actions aimed at ensuring generation adequacy
- The incorporation of demand side flexibility and in particular demand response in electricity markets

With regard to renewable energy support schemes, the Commission considers that making rigid mechanisms more flexible is a desirable change in order to respond to falling production costs and to avoid over-compensation. It promotes a series of overarching principles to handle the reform process: flexibility of the support scheme over time, announcement of automatic reductions, planned review periods, clear commitments to avoid ex-post modifications of the rate of return for past investments.

This guidance package also explores four specific aspects more in depth:

- The choice and design of support instruments
- The methodology to keep costs low
- The needed reforms to foster the integration of renewable generators in power markets
- The "Europeanisation" of support for renewable energy sources

EPIA prepared a Press Briefing on this new guidance package, in which you will find a short summary of these proposals as well as an analysis of the main provisions.