Market Design: Opening the door to flexible renewable technologies?
EGEC Reaction to the Committee on Industry and Energy vote on the Internal Market for Electricity Regulation
Brussels, 21st February 2018 – Today, the European Parliament’s Committee on Industry, Research and Energy (ITRE) sent a positive signal to innovative and flexible renewable technologies such as new generation of geothermal plants, by voting on the draft reports for the different legislative proposals that compose the “Market Design initiative”, aimed at reshaping the European Union’s electricity market to make it ready for more decentralised renewable generation.
“The Electricity Market Design is not only about technologies that are market ready today. It must also be about technologies that will be key market components tomorrow. Recognising the special role of innovative technologies such as geothermal systems is crucial for a sound, cost-efficient and renewable based electricity system tomorrow” noted Philippe Dumas EGEC Secretary General.
The Parliamentary Committee supported priority of dispatch for renewable generation installations that are a demonstration project. This provision acknowledges the special role of demonstration projects as specials actors in the electricity system on the margin of the market. The purpose of such projects is to showcase new renewable/geothermal technologies at scale. Allowing them not to behave fully like a market actor – that is, providing them with priority dispatch – reduces the cost of such geothermal projects, and hence the cost of innovation for the European geothermal industry.
“The Electricity Regulation must reflect a reality of renewable energy that is not always understood: there are some renewable technologies, like geothermal, that are base load and flexible, and provide services to the electricity system” said Philippe Dumas.
For renewables that are mostly referred to as “variable” in the European Commission proposal for an Electricity Regulation, the European Parliament’s Committee acknowledges the services flexible renewables can provide by proposing all sources, including flexible renewables, eligible in capacity mechanisms. Some of them, such as geothermal, can have an important role in stabilising the electricity system, providing grid services and ensuring security of supply.
“Investing in flexible renewable technologies is key for a renewable based electricity system” concluded Philippe Dumas. “These proposals on demonstration projects should provide are a green light for the RES industry”.
Contact:
Thomas Garabetian, Policy Officer, EGEC
t.garabetian@egec.org / +32 2 318 40 62