Europe remains in the grips of an energy crisis as a result of reliance on gas and declining levels of hydro and nuclear power.

This has prompted high-level discussions among political leaders and a public consultation by the European Commission on the EU electricity market design.

SolarPower Europe, a member-led industry association, has this week released its own vision for the EU electricity market design, calling for a rapid phase-out of gas from the power system and a dramatic increase in renewable energy investments and clean flexibility in the grid.

Instability

According to head of regulatory affairs at SolarPower Europe Naomi Chevillard, the current energy crisis is due to the high cost of gas and the need for a change in the foundation of electricity markets.

The current market design, with its focus on marginal pricing, is causing regulatory instability and hindering investment in new renewable technologies.

SolarPower Europe's vision for reform calls for empowering consumers to benefit directly from low-cost renewable electricity through access to renewable power purchase agreements (PPA) and for de-risking corporate PPAs for energy-intensive industries.

It also advocates for the acceleration of clean flexibility, such as storage, in the wholesale and balancing market, and a resilient and reliable electricity grid.

Incentives

In order to achieve these goals, grid operators must have the right incentives to invest in efficient technologies and permitting procedures must be streamlined to allow for timely connection of renewable energies.

SolarPower Europe says its reform is a step towards a sustainable energy future for Europe, based on renewable energy and a resilient electricity grid.