Energy markets are under heavy pressure. Gas prices will remain high in the coming years, causing distress for residential and industrial consumers. On Friday, September 9, European energy ministers are discussing emergency measures to deal with the crisis.
The Global Solar Council remarks how the only structural way out of the crisis is to ensure investments into renewable energy capacity. Any intervention on electricity markets should therefore not result in a distortion of investment signals. In particular, it must respect the terms of the PPA contracts already signed. Moreover, any objective to reduce electricity consumption would have to take into consideration the need to advance in the electrification of the economy as the most effective measure to reduce dependence on gas.
Ahead of the discussions, José Donoso, GSC Chairman, stated: “The current energy crisis is structural and rooted in the EU overdependence on gas. It is necessary to reduce power consumption yet taking into consideration the need to avoid a slowdown in the electrification of the economy through renewables as the most effective measure to reduce such dependence. Solar PV can offer direct price relief to residential and industrial consumers who are now impacted by the energy crisis. The EU should prioritize measures to accelerate deployment of solar energy and ensure that a cap on gas price, although necessary in the short term, does not impact existing long-term renewable contracts, which are instrumental in sustaining investors’ confidence.”
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