Published: Tue, 14 March 2023
Speaking from a high-level event in the European Parliament on Thursday, Seán Kelly, MEP for Ireland South, has stated that “now is not the time for a comprehensive redesign of the EU electricity market, but targeted changes could bring big benefits”.
Kelly hosted the event along with Eurelectric, who represents the electricity industry at a European level, and the UK Department for Business, Energy & Industrial Strategy in relation to the very consequential new reform of the EU Market Design.
“It is important to highlight EU-UK cooperation to ensure a successful market reform that supports cross-border electricity trading, particularly on the island of Ireland and the Single Electricity Market, which operates between the North and South. Our island is solving challenges today in relation to managing high levels of renewable energy integration that other EU countries will not experience for several years to come.”
“However, we face limitations due to our interconnection with neighbouring systems, here we should focus on creating a much more connected European grid that will allow for renewable electricity to be shared across the continent.”
The EU market design is a critical component of the EU’s energy policy framework. It aims to ensure that the EU’s energy markets are functioning properly, with a level playing field for all participants, including new entrants and smaller players. In particular, it aims to promote competition, innovation, and efficiency, thereby lowering energy costs for consumers and contributing to the EU’s decarbonization goals.
“Immediate actions of the energy crisis should not be at the detriment of the future needs our energy system. The market should be for the benefit of society, not syphon the life from it. We should be clear that the current crisis is not driven by the way we have designed our electricity markets, but by our over-reliance on imported fossil fuels.”
“In the longer run we will need to look at how markets function in a net zero scenario where fossil fuels are no longer setting the price. This means working out how we support renewables, storage, flexibility etc. and to make sure that the market continues to provide the needed investment signal in a very different energy mix. Ireland is a leader in renewable energy integration and we should be at the forefront of this important debate.