[ParlTrack]

Proposal for a regulation
Recital 1

(1) Very high prices and volatility in electricity markets have been observed since September 2021. As set out by the European Agency for the Cooperation of Energy Regulators (‘ACER’) in its April 2022 assessment of EU wholesale electricity market design17, this is mainly a consequence of the high price of gas, which is used as an input to generate electricity. Additional factors such as, maintenance, corrosion problems or outages experienced in various production plants further amplified the increase in electricity prices. _________________ 17 European Union Agency for the Cooperation of Energy Regulators, ACER’s Final Assessment of the EU Wholesale Electricity Market Design, April 2022.

2023/05/25
Committee: ITRE

Christophe GRUDLER, Susana SOLÍS PÉREZ, Valérie HAYER

Proposal for a regulation
Recital 4

(4) On 18 May 2022 the Commission presented the REPowerEU plan20 that introduced additional measures focusing on energy savings, diversification of energy supplies and accelerated roll-out of renewable energy and other fossil-free solutions aiming at ending the Union’s dependency on Russian fossil fuels, including a proposal to increase the Union’s 2030 target for renewables to 45%. Furthermore, the Communication on Short-Term Energy Market Interventions and Long-Term Improvements to the Electricity Market Design21, in addition to setting out additional short-term measures to tackle high energy prices identified potential areas for improving the electricity market design and announced the intention to assess these areas with a view to change the legislative framework. _________________ 20 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions - REPowerEU Plan, COM(2022)230. 21 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Short- Term Energy Market Interventions and Long Term Improvements to the Electricity Market Design – a course for action, COM(2022) 236 final.

2023/05/25
Committee: ITRE

Morten PETERSEN, Christophe GRUDLER, Klemen GROŠELJ, Ivars IJABS

Proposal for a regulation
Recital 21

(21) To enhance the possibilities of market participants for hedging, the role of the single allocation platform established in accordance with Commission Regulation (EU) 2016/1719 should be expanded. The single allocation platform should offer trading of financial long-term transmission rights between the different bidding zones and the regional virtual hubs. The orders submitted by market participants for financial transmission rights shall be matched by a simultaneous allocation of long term cross zonal capacity. Such matching and allocation should be performed on a fre~~gular~~quent basis, to ensure enough liquidity and, hence, efficient hedging possibilities to market participants. The long-term transmission rights should be issued with ~~frequ~~different maturities (ranging from month ahead to at least three years ahead), in order to be aligned with the typical hedging time horizon of market participants. The single allocation platform should be subject to monitoring and enforcement to ensure that it performs its tasks properly.

2023/05/25
Committee: ITRE

Morten PETERSEN, Christophe GRUDLER, Claudia GAMON, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Recital 27

(27) In this framework, Member States should strive to create the right market conditions for long-term market-based instruments, such as power purchase agreements (‘PPAs’). PPAs are bilateral purchase agreements between producers and buyers of electricity. They provide long-term price stability for the customer and the necessary certainty for the producer to take the investment decision. Nevertheless, only a handful of Member States have active PPA markets and buyers are typically limited to large companies, not least because PPAs face a set of barriers, in particular the difficulty to cover the risk of payment default from the buyer in these long-term agreements. Member States should take into consideration the need to create a dynamic PPA market when setting the policies to achieve the energy decarbonisation objectives set out in their integrated national energy and climate plans. Regulatory unpredictability, instability and retroactivity would undermine the ability of PPAs to contribute to the clean energy transition and energy independence.

2023/05/25
Committee: ITRE

Christophe GRUDLER, Susana SOLÍS PÉREZ, Valérie HAYER

Proposal for a regulation
Recital 27

(27) In this framework, Member States should strive to create the right market conditions for long-term market-based instruments, such as power purchase agreements (‘PPAs’). PPAs are bilateral purchase agreements between producers and buyers of electricity. They provide long-term price stability for the customer and the necessary certainty for the producer to take the investment decision. PPAs therefore help to support the competitiveness of the Union’s businesses, including SMEs, who face international competition . Nevertheless, only a handful of Member States have active PPA markets and buyers are typically limited to large companies, not least because PPAs face a set of barriers, in particular the difficulty to cover the risk of payment default from the buyer in these long-term agreements. Member States should take into consideration the need to create a dynamic PPA market when setting the policies to achieve the energy decarbonisation objectives set out in their integrated national energy and climate plans.

2023/05/25
Committee: ITRE

Morten PETERSEN, Christophe GRUDLER, Claudia GAMON, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Recital 46

(46) Consumers should be able to choose the supplier which offers them the price and service which best suits their needs. Advances in metering and sub- metering technology combined with information and communication technology mean that it is now technically possible to have multiple suppliers for a single premises. Consumers should be entitled to request additional meters for this purpose, while bearing the associated costs for their installation or, where applicable, upgrade, under fair, reasonable and cost-effective conditions. If they so wish, customers should be able to use these possibilities to choose a separate supplier notably for electricity to power appliances such as heat pumps or electric vehicles which have a particularly high consumption or which also have the capability to shift their electricity consumption automatically in response to price signals. Moreover, with fast- responding dedicated metering devices which are attached to or embedded in appliances with flexible, controllable loads, final customers can participate in other incentive-based demand response schemes that provide flexibility services on the electricity market and to transmission and distribution system operators. Overall, such arrangements should contribute to the increased uptake of demand response and to consumer empowerment allowing them to have more control over their energy use and bills, while providing to the electricity system additional flexibility in order to cope with demand and supply fluctuations.

2023/05/25
Committee: ITRE

Christophe GRUDLER, Valérie HAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) 2019/943
Article 1 – point e

(e) support long-term investments in renewable and fossil-free energy generation and enable consumers’ to make their energy bills less dependent from fluctuations of short-term electricity market prices, in particular fossil fuel prices in the medium to long-term.

2023/05/25
Committee: ITRE

Christophe GRUDLER, Susana SOLÍS PÉREZ, Valérie HAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) 2019/943
Article 2 – point 77

(77) ‘power purchase agreement’ or ‘PPA’ means a contract under which a natural or legal person agrees to purchase electricity from an electricity producer on ~~a market basi~~commercial terms;

2023/05/25
Committee: ITRE

Christophe GRUDLER, Valérie HAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point a

(EU) 2019/944
Article 8 paragraph 1

NEMOs shall allow market participants to trade energy as close to real time as possible and at least up to the intraday cross-zonal gate closure time. ~~By 1 January 2028, the intraday cross-zonal gate closure time shall be at the earliest 30 minutes ahead of real time.~~

2023/05/25
Committee: ITRE

Christophe GRUDLER, Valérie HAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point b

(EU) 2019/944
Article 8 paragraph 3

NEMOs shall provide products for trading in day-ahead and intraday markets which are sufficiently small in size, with minimum bid sizes of 100kW or less, to allow for the effective participation of demand-side response, energy storage and small-scale renewables including direct participation by customers. Derogation may be granted until December 2026.

2023/05/25
Committee: ITRE

Morten PETERSEN, Christophe GRUDLER, Claudia GAMON, Klemen GROŠELJ, Emma WIESNER, Susana SOLÍS PÉREZ, Ivars IJABS

Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point d Regulation (EU) 2019/943

(i) incentives for efficient investments in networks, including on flexib~~ility~~le resources and flexible connection agreements.

2023/05/25
Committee: ITRE

Christophe GRUDLER, Valérie HAYER