EU Leaders Call for Completion of Electricity Market Reform by the End of 2023

Leaders of the European Union member states have requested that reforms to the electricity market be completed by the end of this year to avoid significant price spikes in the future, as was the case last year.

The leaders also called in their conclusions adopted on the first day of their two-day summit for the EU Council and the European Parliament to ‘reach an agreement on all relevant proposals to accelerate the green transition as soon as possible and to continue work on the proposed electricity market design reform without delay, so that it can be adopted by the end of 2023.’

The European Commission proposed an electricity market reform last week, aimed at ensuring price stability and encouraging investment in renewable energy through long-term contracts.

In its proposal, the Commission did not alter the existing functioning of the short-term electricity market, but instead proposed long-term power purchase agreements to make consumer electricity bills less exposed to short-term fluctuations in fossil fuel prices.

One of the discussion topics was the role of nuclear energy in the green transition, on which there is no consensus among member states. France, on one side, leads countries advocating for nuclear energy to be treated as green, which would bring certain benefits for investing in this type of energy. On the other hand, numerous countries oppose this. The position of the EU’s common institutions is that this issue falls under the exclusive jurisdiction of member states.

European Commission President Ursula von der Leyen stated at a press conference that ‘nuclear energy can play a role in decarbonization,’ but that only ‘zero-emission technologies considered strategic for the future – such as solar panels, batteries – will have full access to the benefits and advantages of European regulations, and this is the case with advanced nuclear technologies in some areas, but not all.’

The European Council also held an extensive discussion on strengthening the long-term competitiveness of the European economy. EU leaders called for continued work to ensure the long-term competitiveness of the European economy.

European Council President Charles Michel highlighted three priorities in this area – reducing administrative burdens, increasing investment in innovation, and providing more funding for research and development.

EU leaders also advocated for strengthening the capital markets union, which, along with completing the banking union, according to the Commission President, is crucial for attracting private investments. ‘But we also need public investments, which is why we need sustainable public finances, which will be brought about by the reform of EU economic governance,’ von der Leyen said.