Fortum calls for strong leadership from the European Commission for EU energy market development
Espoo, Finland, 2012-11-15 14:36 CET (GLOBE NEWSWIRE) -- PRESS RELEASE 15
NOVEMBER 2012
Fortum welcomes the strong commitment of the European Commission to remove the
remaining obstacles to a fully integrated and well-functioning internal energy
market, as stated in the Internal Energy Market Communication published today.
The EU energy market will not materialise by 2014 without enforced commitment
and effort. In order to complete the internal energy market, the EU should
concentrate on the implementation of existing decisions and measures and
improve their functionality.
For example, the rapid increase of subsidy-based, intermittent renewable energy
has totally challenged the functioning of the energy market. As a consequence,
some member states are in the process of introducing national capacity
remuneration mechanisms to support fossil balancing and reserve capacity,
adding yet another subsidy layer that will further deteriorate the market
functioning.
“Fortum shares the Commission's view that without proper EU-level coordination
such capacity remuneration mechanisms will seriously hinder market integration.
This is a very expensive solution for energy consumers", says Esa Hyvärinen,
Vice President, Corporate Relations at Fortum.
"We urge the Commission to launch a process to develop clear EU-level
compatibility criteria for capacity mechanisms. National capacity mechanisms
should be allowed only if a member state can prove that its security of supply
is seriously threatened and cannot be alleviated by cross-border electricity
trade. The Commission should have a clear mandate in ensuring that possible
capacity remuneration mechanisms do not distort the cross-border electricity
trade or influence the location of investments", Hyvärinen continues.
Fortum believes that capacity remuneration mechanisms, when considered
necessary and adopted, should treat all capacities equally, regardless of the
technology or the age of the generation unit. They should also be regional
rather than national, taking full advantage of cross-border trade.
In general, the EU and its member states should put a stronger focus on
developing cross-border transmission capacities. Fortum is of the opinion that
the EU Emissions Trading Scheme should also be enforced so that it would again
start driving power system development. The renewable energy support system
should be developed towards a more market-based and harmonised system.
Moreover, renewable energy producers should start taking full responsibility
for balancing, similarly to other producers.
Fortum Corporation
Corporate Communications
Additional information: Esa Hyvärinen, Vice President, Public Affairs, tel.
+358 40 826 2646
Fortum
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