Electricity market

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Theme: Electricity markets. An EU expert’s response to the theme’s key issues. WHO Hans ten Berge Born in 1951, Dutch citizen Hans ten Berge has a degree in chemistry from Rijksuniversiteit in Utrecht and a degree in business administration from the University of Delft. Ten Berge has extensive experience in the international corporate arena. He has held leadership positions in e.g. Exxon Chemie and Kemira Agro. Hans ten Berge was Chairman of EURELECTRIC’s Market Committee for several years until he assumed the position of EURELECTRIC’s Secretary General in 2007. by 2020. The challenges are many and, from an energy producer’s perspective, 2020 will come quickly, so Hans ten Berge is calling for quick measures. “Integrating electricity wholesale markets is necessary. Likewise, electricity transmission links must be expanded and fortified in order for energy from renewable sources to reach the consumer. The subsidy systems for renewables distorting the markets must be gradually abandoned. Eliminating subsidies can cause resistance in some countries, but the markets should be given the opportunity to direct renewable energy investments based on the price signals occurring in the competitive markets,” ten Berge notes. a CarBoN-NEutral SoCiEty iN 2050 The goal of Europe’s energy industry is to achieve carbon-neutral electricity production by 2050. In 2009, a total of 61 CEOs, whose companies account for 70 per cent of Europe’s power generation, signed a declaration committing to this goal. The joint declaration highlighted three ways to achieve the goal. “Supporting the role of a market-based EU emissions trading scheme as the central mechanism encouraging emissions reductions and investments in renewable energy, allowing all low- and no-carbon production forms, and additional investments in R&D – particularly in the development of clean technologies, such as carbon capture and storage,” ten Berge lists. According to ten Berge, Europeanwide market regulation is always a more effective approach than leaning on different and overlapping national systems. This is particularly true in the energy industry, where many companies operate across national boundaries. A stable and predictable operating environment is extremely important for the functioning of the markets and for the development of optimum technology solutions. iNFo EurElEcTrIc is an association representing the European electricity sector with members from 33 Eu and European OEcD countries. Fortum forAgendA 15

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