The European Commission calls nations and stakeholders in the continent to focus on the adoption of renewable energy to mitigate the forces that threaten to drive energy prices higher.
Currently, the situation with electricity prices in Europe has destabilized due to the post-pandemic economic recovery combined with a green transition on the legislative level. This has created a shortage of supply and sent the prices soaring.
The response to the situation cannot come in the form of backing down on environmental policy change requirements, so the EU Commission has stepped in to invite everyone to see this as an opportunity to adopt renewable sources with greater zeal.
The Commission states that a rapid transition to clean energy forms would help stabilize price shocks not only mid-term but in the future as well. Its proposals for accelerating this effort are the following:
- Make the permission granting processes simpler and quicker
- Accelerate energy auctions
- Expand storage capacity for battery and hydrogen systems
- Launch investment initiatives for the development of renewable energy source parks (solar, wind)
In addition to the above, the EU Commission recognizes the need to regulate local renewable communities and merge them more tightly to the existing electricity market. It is time for renewable sources to get up from the back seat and assume a more leading role.
According to the existing PPAs, Europe will be generating a total of 407 GW of electric power from solar energy by 2030. The problem is that the looming energy crisis is pushing PPA prices higher, with Germany and the UK being hit the worst, seeing an 8.9% increase in the PPA costs.
The Commission will provide additional guidance and more specific frameworks on how the renewable Power Purchase Agreements (PPAs) will flourish in the content before 2023, but until then, every stakeholder is urged to do whatever is in their power to move things in the right direction.