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EU's power market proposals aim to avoid price collapse by 2030

With Henry Edwardes-Evans and Siobhan Hall

March 15, 2017 12:16:42 EST (7:25)

The European Commission's proposed EU power market design is all about integrating increasing shares of low-marginal cost renewables efficiently and avoiding a wholesale price collapse by 2030. It calls for more short-term trading and demand response, which could shift the day-ahead price curve so there would be more power plant hours at lower prices -- around €20/MWh or more lower, according to the EC. But there could still be around 3000 hours/year at peak prices, enough to make a gas-fired power plant profitable.


The EC argues that an energy-only market – without capacity mechanisms – would particularly favor efficient gas-fired plants from 2025. S&P Global Platts editors Henry Edwardes-Evans and Siobhan Hall compare the proposals with current market conditions, and look ahead to the next steps.


Read Siobhan's related feature: Thermal power plants to limit EU power price falls

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