Electricity market
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Vision Towards carbon-neutral energy production Europe needs a strong shared vision to achieve its carbon-neutral target, says hans ten Berge, Secretary General of EURELECTRIC, Europe’s Union of the Electricity Industry. Jenni Jusslin EurElEcTrIc T Integrating electricity wholesale markets is necessary. wo distortions plague Europe’s electricity markets: the special treatment of some energy production forms and the different subsidy systems implemented by member countries,” notes Secretary General Hans ten Berge. ”Together they hinder the functionality and development of the electricity markets,” he explains. According to ten Berge, Europe needs deeper energy policy integration. The EU’s goal is to finalise the integrated internal electricity market by 2014. Despite this, decisions on energy policy and the related steering mechanisms are still being made from national perspectives in member countries. To promote the integrated electricity market, ten Berge is calling for marketbased policies and a European perspective to decision making. “EURELECTRIC supports a genuinely market-driven model at the European level. In this model, e.g. subsidy systems would be targeted to the research and development of energy technologies rather than support for certain production forms,” ten Berge notes. “The most critical challenge for the electricity sector is long-term predictability of the operating environment. Currently, the goals have been set only until 2020 – even though the energy industry’s investment cycles extend beyond that. We need a clear definition of where the sector should be in 2030 and 2040”, says ten Berge. rENEwaBlE ENErGy aS Part oF thE ENErGy SyStEm Significantly increasing renewable energy challenges the entire energy system, which so far is based on stable, largescale production. According to Hans ten Berge, the challenge should be confronted holistically. “Europe is making major investments in renewable energy production, but that alone is not enough. In order to utilise renewable energy in the best way, investments must also target flexible reserve and regulating capacity. New infrastructure, like smart grids and more transmission connections are also needed,” ten Berge says. Europe has set a common target of a 20 per cent increase in renewable energy’s share of the end usage of energy 14 Fortum forAgendA
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