Summary:
The joint statement by Cefic and WindEurope to the President of the European Commission highlights the critical impact of the Ukraine war-induced energy crisis on Europe’s energy-intensive industries, particularly the chemical sector. Despite temporary measures focusing on retail consumers and plans to expedite renewable energy projects, the situation remains dire. The letter argues that Europe’s fragmented policy response threatens the internal energy market and calls for a comprehensive review of electricity market design to support climate neutrality and industrial competitiveness. The review must ensure sustainability, improve grid infrastructure, and foster long-term investments through measures such as promoting long-term contracts and enhancing demand flexibility.
Takeaways:
- The electricity market design should balance sustainability, security, and competitiveness to ensure EU industry remains viable.
- Accelerating the development and enhancement of electricity grids is essential, requiring the removal of regulatory barriers and deeper cooperation among stakeholders.
- Long-term contracts should be promoted to facilitate investment in new power capacity, providing stability for both consumers and investors.