John FitzGerald: EU electricity market needs reform to end reliance on windfall profits

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John FitzGerald: EU electricity market needs reform to end reliance on windfall profits
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John FitzGerald: EU electricity market needs reform to end reliance on windfall profits via IrishTimesBiz

Although some wind and solar operators have made exceptional profits over the past year, they would be better served by a system that provided steady remuneration for their capital costs, without having to rely on occasional hourly peaks in prices that are driven by the cost of fossil fuels.

To date, reform of the EU and British electricity markets to meet these challenges has been ad hoc. In some cases the fixes adopted have made things worse To date, reform of the EU and British electricity markets to meet these challenges has been ad hoc. In some cases the fixes adopted have made things worse. Today’s mix of support mechanisms for producers is one that’s unnecessarily costly for consumers.

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