Nuclear power has an important role in the EU’s new energy market model

17.6.2016

​ The European Commission is expected to publish this year and next year a series of legislative bills to influence energy markets and nuclear power in Europe.

iStock_000045782368_web.jpgThe poor performance of electricity markets in the EU region has been a regular topic of conversation in recent years. Over-capacity and subsidy mechanisms for renewable power generation have seen electricity prices plummet to rock bottom. Furthermore, emissions trading has not worked.

The EC is now in the process of preparing a new electricity market model that would reform the markets. Central to the concept is market competition. Measures to achieve this include removal of subsidies, more emphasis on emissions trading as an important control for climate change targets and compensation obligations for forms of power generation that are dependent on weather conditions.

- In my mind, the direction is right because emissions trading will treat emission-free technologies in an equal way, contrary to subsidizing. In healthy markets there is room for both renewable energy sources and dispersed small-scale generation as well as for emission-free base-load electricity generation by nuclear power, which is unaffected by the weather, TVO's President and CEO, Jarmo Tanhua, says.