Contact
Friedrich-Ebert-Stiftung
Climate and Social Justice
Cours Saint Michel 30e
1040 Brussels, Belgium
The annual World Nuclear Industry Status Report (WNISR) provides a comprehensive overview of nuclear power plant data, including information on... More
Russia's invasion of Ukraine had a massive impact on the energy supply of EU member states. The question of how and when Europe could free itself from... More
Particularly from an economic perspective, it is beneficial for Europe if we invest early and wholeheartedly in climate-friendly technologies. The... More
Decarbonising our homes via heat pumps and renewable district heating is crucial for effectively fighting climate change. More
Where do we stand and where are we headed? More
One record follows the next: heat, drought, forest fires, heavy rain. And Europe is in the middle of it all. We will feel the consequences even more... More
Cours Saint Michel 30e
1040 Brussels, Belgium
A compromise was urgently needed and a compromise was found. At the last minute, so to speak. However, no one is really satisfied.
What is the problem? The reform of the EU electricity market, aimed at greater security of supply and more stable prices. In particular, the question of subsidising existing nuclear power plants was hotly disputed. And Germany and France in particular were at odds with each other. The compromise reached by the Member States, however, is unlikely to mean that the difficulties are over. The agreement with the European Parliament is now coming up, and there is likely to be resistance, too. Why?
The Council agreed on 17 October 2023 that France will be able to subsidise existing nuclear power plants through so-called contracts for difference. This will allow Paris to operate and modernise its installations for longer. Other member states, and Germany in particular, fear that France will now impose contracts with a low levy on its state-owned EDF group.
In view of EDF's quasi-monopoly position in France, this would allow very low electricity prices even below the market price compared to other countries. And thus competitive advantages for the French industry.
The compromise now is that France can subsidise existing plants, but the EU Commission has control over the contracts for difference. This is to avoid distortions of competition. Coal-fired power plants built before 2019 are also to be allowed to be subsidised via a capacity market until 2028. This clause secured Poland's approval, but this is naturally very controversial.
Parliament had so far excluded such contracts for difference for existing as well as fossil plants. Heated debates are therefore guaranteed.
Would you like more background on the topic of contracts for differences and electricity market design? We recommend reading our briefing on the topic.
FES Just Climate acts as a think tank about current and coming trends, and a policy advisor in ongoing debates. We support FES offices and their partners in shaping the industrial revolution of our times. We focus on energy, industrial, structural and labor policies, and the European Green Deal.
In the future, climate and social policymust be two sides of the same European coin. We need to develop climate-neutral energy systems and industries. Simultaneously, we need to safeguard and strengthen the welfare state, local participation and workers’ rights.We shall be working on this with our political, trade union and civil society partners, as well as other think tanks.
Detsch, Claudia
Download publication (630 KB, PDF-File)
Giner-Reichl, Irene; Veldhuizen, Maria van
Download publication (560 KB, PDF-File)
Download publication (22 MB, PDF-File)
