In order to block the rise in electricity prices and reduce prices, Europe has launched new contracts called “two-way difference long-term contracts” and “encouraging direct consumer purchases”.
The European Commission on Monday proposed changes to electricity market rules to support the transition to renewable energy to increase the use of fixed-price power contracts and protect consumers from price spikes.
The key to the new rules revealed by Reuters is a “long-term contract incentive” to fix stable electricity prices and a “state guarantee system in consumer power purchase contracts” as a long-term contract for consumers to purchase electricity directly from generators without relying on the market.
The European power grid is a long-term contract based on 'loop-type' transmission led by 'export-import' countries. contract (CfD)'.
A CfD for power price stabilization guarantees a fixed “strike price” payment for electricity to generators, regardless of the price in the short-term energy market.
In line with the long-term national contract electricity price, the government will implement a national guarantee system for a ‘long-term power purchase contract’ in which consumers directly purchase electricity from their own generators without relying on the electricity market.
French Finance Minister Bruno Le Maire said the new power pricing plan was "a solid basis for starting discussions" and "should be adopted this year".
France's energy ministry told Reuters that the EU's proposal is consistent with measures France is pursuing, including CfD for nuclear power plant investment.
The reform would have to be negotiated and approved by the 27 EU countries and the European Parliament.
EU Energy Director Kadri Simson told Reuters that the energy crisis triggered by Russia's aggression on Ukraine has exposed several shortcomings in the current system. .
The new system breaks away from the existing method in which the government supports companies in the face of skyrocketing electricity and gas rates. change the frame of the structure so that
The existing electricity market in Europe is based on a system that sets energy prices in the wholesale market, and if energy prices surge to an extreme level (based on a surge of 70% or more in wholesale electricity prices), as in last year, the European Commission recommends that the government Enforced to temporarily fix prices up to 80%.
Germany, the European electricity market benchmark, saw gas prices hit record highs on baseload power contracts last year, peaking in January and German power contracts falling much lower on the 14th.
Among the 27 EU countries, Reuters said, “there was disagreement about how large the overhaul should be, with Denmark, Germany and Latvia opposing major changes.” He said that a more fundamental redesign was needed to prevent it.”
Germany's policy to reduce nuclear power plants was carried out in exchange for nuclear power in France, and Europe is connecting the power circulation system that connects the 'international interconnection line' centered on Germany and France to its own country.
In 2020, Germany exported 14.2TWh to Austria, 12.3TWh to Switzerland, 11.2TWh to Poland, 13.0TWh to France, 8.7TWh to the Netherlands, and 7.5TWh to Switzerland. At 47.8 TWh, interstate power lines were connected to European countries.
The domestic power system of European countries, centered on Germany, is a system in which interconnections are extensively connected to other European power systems in a 'loop', and Korea follows Japan in a single transmission system that connects transmission routes at substations. As a radial power system, there is no experience in international power negotiations, and exports of nuclear power plants are limited to the Middle East and limited to Eastern Europe.
The EU Commission said Germany "should protect consumers from future volatility".
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