“Marginalism works” reiterates Brussels in proposal for European electricity market


Norbolsa | The European Commission presented the reform of the electricity market, focusing on long-term contracts, as leaked by the Periódico de la Energía magazine. We highlight three aspects of this proposal; firstly, Brussels has made it clear that the current market works, and therefore marginalism will continue to work; secondly, long-term contracts are introduced as requested by the sector with the aim of introducing more stability; and finally, together with the CfDs, the European Commission is studying the promotion of other long-term contracts such as PPAs. As the President of the European Commission commented: “The aim of the reform is to pass on the low cost of renewables to consumers”.

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