European Commission President Ursula von der Leyen is expected to announce the European Union’s electricity system reform options on September 14. If you recall, she recently gave a speech discussing the issues.
It sounds like the proposals will focus on reducing overall power demand, putting price caps on non-gas generation, and using surplus revenue from non-gas generation to subsidize consumers. When I read “non-gas generation,” I think of renewables (wind and solar), along with nuclear and coal. I guess they’re going to take away the economic surplus from wind and solar and give it back to the consumer. Sounds to me like it will disincentivize incremental wind and solar production.
Below is an Energy Crisis Intervention Tracker from S&P Global, if you’d like to review a summary of policy maker responses to date:
You can read more here, or the link below: