Home / Business and Economy / EU Energy Prices: Clean Power Investment at Risk?
EU Energy Prices: Clean Power Investment at Risk?
16 Mar
Summary
- Statkraft warns against adjusting electricity prices in Europe.
- Marginal pricing is crucial for stimulating renewable energy investment.
- Gas has recently played a less dominant role in price setting.
European regulators face pressure to consider interventions in electricity pricing, but Statkraft AS, a major renewable energy producer, cautions against such actions. The company argues that adjusting prices could jeopardize essential investments in clean energy infrastructure across the region.
Statkraft's CEO, Birgitte Vartdal, emphasized the importance of the current marginal pricing system. This system, where the price is determined by the cost of the last unit of energy required to meet demand, often gas, is seen as critical for stimulating greater renewable energy development.
Vartdal highlighted a recent positive shift, noting that gas has been setting the marginal price for fewer hours. Since 2020, gas's role has decreased from 72% to 40% of the time, indicating a move towards a more diversified energy mix.
This trend is further supported by the increasing generation from wind and solar farms, which surpassed fossil fuel power stations in Europe last year. Statkraft, operating numerous hydropower plants and other renewable assets, benefits from and contributes to this ongoing energy transition.
