European power industry calls on policymakers to focus on carbon price

Ahead of the European Council on Energy on 4 February, EURELECTRIC, the association of the European electricity industry, has developed a position paper outlining its position on the European Commission communication “Energy 2020 - A strategy for competitive, sustainable and secure energy”, published on 10 November 2010.

The general messages of the EURELECTRIC paper are as follows:

  • The carbon price should be the key driver for investment.
  • The integration of the EU electricity and gas markets and strengthening of transmission infrastructure are crucial.
  • Policymakers need to promote much greater supply and demand flexibility to cope with an increased penetration of renewables.
  • A smart distribution grid is essential to realising our energy policy goals, and its development needs more incentives.
  • We need to maintain a diversified fuel mix as an insurance against supply disruptions.
  • There must be greater engagement with the public in order to ensure acceptance of essential new energy infrastructure.
  • Policymakers must recognise the global competition for investment funds in the energy sector, and must therefore build a stable policy framework.

EURELECTRIC looks forward to further discussion and involvement in the development of the EU’s 2020 Energy Strategy, and hopes that this position paper will provide useful input to ongoing discussions, in particular to the summit of Heads of State and Government on 4 February.

The full paper can be accessed here.