Spain has sent the European Union a proposal for the announced far-reaching reform of the European electricity market. The key points of the reform proposed by the left-wing government of Prime Minister Pedro Sánchez are the development of renewable energies, greater security of supply, affordable consumer prices and a reduction in “the sometimes huge price volatility”, as the Ministry for Ecological Change announced. According to media reports, Spain is the first country to submit a proposal. The proposal, approved at Tuesday’s weekly meeting of Spain’s Council of Ministers, aims to partially decouple the price of electricity from the price of gas so that consumers can also benefit from the cheaper costs of renewable energy. For this purpose, the market is to be divided into two parts. Renewable carriers are to be removed from the so-called day-ahead market, where electricity for the following day is traded. They are to be traded in a new futures market. Madrid also announced that Brussels would apply for an extension of the negotiated electricity price cap until the end of 2024. This regulation, which will initially apply to Spain and Portugal until the end of May, sets the upper limit at 45 to 50 euros per megawatt hour.
EU electricity market – Spain presents proposal for reform – Economy
