Rising Energy Prices: Euromines takes action
In light of the continuously high energy prices on the electricity and gas markets, Euromines sent a letter to the presidents of the European Commission, the European Council and the European Parliament as well as the Director of the EU Agency of Energy Regulators (ACER). Euromines sounded alarm that without appropriate action, these price-hikes will forestall investments into decarbonization, reduce international competitiveness of EU mining companies and jeopardize the Green Deal as a sustainability and growth programme on both objectives.
As a reminder: with ever higher energy prices, and the reduced profitability that comes with them in the energy intensive industry, the investment potential to go green and electrify is reduced, putting the 2030 and 2050 targets for a decarbonized EU into jeopardy. At the same time, these price hikes are likely to return in the future, so that investment uncertainty will over time widen the competitiveness gap of the EU mining sector.
Euromines main proposals to take an adequate counteraction include inter alia
- Measures to increase the reliability of spot markets
- A revision of the marginal price setting mechanism in electricity markets
- Future-proofing power purchase agreements
On 10 February, Euromines will participate in a workshop organised by ACER and address in its intervention the recommendations for a better-adjusted framework for energy prices.
