Based on a new report assessing electricity liberalisation in an environmental context, Greenpeace's latest intervention reiterates long-expressed criticisms of the EU's power market programme. According to campaigner Karl Mallon the study also goes beyond previous critiques by analysing market developments flowing from liberalisation.
Two key ones are increased market consolidation and greater price volatility largely caused by this. Both factors tend to penalise small firms, among which are the overwhelming majority of renewable energy companies. The competitive playing field is further rigged against renewable energies by continuing large-scale national subsidies to fossil fuel and nuclear energy sources, Greenpeace says.
In response, the group says, the EU should counter market domination by introducing environmental performance standards for electricity generators. It should help renewable energy producers to hedge price volatility risks. More broadly it should take steps to internalise external costs of nuclear and fossil fuel generation, thus making renewable and clean energies more competitive.
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