European Union (EU) nations will introduce a income cap on operational photo voltaic PV vegetation as a part of a bundle of emergency measures permitted immediately.
Ministers from the bloc’s 27 member states agreed to cap the market revenues at €180/MWh (US$177/MWh) for ‘inframarginal’ electrical energy mills, reminiscent of renewables, nuclear and lignite.
Such operators “have made unexpectedly massive monetary beneficial properties” in latest months due to the position of coal and fuel as price-setting marginal sources that at the moment inflate the ultimate value of electrical energy, in response to the European Council.
The necessary cap on market revenues will apply throughout the EU from 1 December 2022 to 30 June 2023, longer than proposals put ahead by the European Fee earlier this month.
Member states agreed to incorporate the likelihood for particular person nations to set the next income cap, use measures that additional restrict market revenues, differentiate between applied sciences and to use limits to market revenues of different actors, together with merchants.
SolarPower Europe mentioned it’s “deeply involved” about patchwork implementation because it urged member states to stay to the EU-level cap of €180/MWh and apply the cap on web market revenues solely.
The commerce physique additionally known as for revenues to be collected on a month-to-month portfolio foundation to consider all of the market revenues and bills in addition to the hedging prices.
The income cap safeguards photo voltaic PV vegetation that don’t earn further earnings on electrical energy markets, in response to SolarPower Europe.
The European Council mentioned that the extent of the cap is designed to protect the profitability of the operators and keep away from hindering investments in renewable energies.
Nonetheless, as reported by PV Tech Premium final week, business analysts have warned that the measures could trigger traders to shrink back from service provider enterprise fashions.
In the meantime, some nationwide governments are already planning new taxes that might come on prime of the emergency EU measures, in response to WindEurope, which mentioned these further proposals embody taxes on electrical energy producers’ complete income, quite than their earnings.
The commerce affiliation added: “Buyers will merely go elsewhere. To the US for instance, the place the Inflation Discount Act has massive tax credit for renewables investments.”
Beneath the proposals from the European Fee, revealed earlier this month, surplus revenues from energy mills shall be channelled by member states to remaining electrical energy shoppers who’re uncovered to excessive costs. These revenues can be utilized to supply earnings help, rebates, investments in renewables, power effectivity or decarbonisation applied sciences.
Alongside the income cap, the ministers agreed immediately to set a compulsory short-term solidarity contribution on the earnings of companies energetic within the crude petroleum, pure fuel, coal and refinery sectors.
Member states additionally agreed to a compulsory goal to scale back their electrical energy consumption from December to March.