Measures related to windfall revenues of power generators in Europe should target actual profits only and exempt renewables that do not make windfall profits, SolarPower Europe (SPE) has said.
According to the trade body, most solar farms across Europe get a fixed price for the electricity they produce either from a government-backed support scheme or a power purchase agreement with an industrial consumer.
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They “should therefore not be subject to windfall measures”, SPE said.
Preliminary estimates from Germany suggest that around two-thirds of solar PV electricity is not making windfall profits, according to the association’s statement.
“The only structural way out of the crisis is to increase renewable energies, which are the ‘energy insurance of Europe’,” said SPE, adding that investment decisions need to be taken now with stable regulatory frameworks.
Furthermore, emergency measures should include plans to accelerate the rollout of solar PV for both residential and commercial consumers, substantially lowering the impact of high gas prices.
Last week, EC President Ursula Von der Leyen said the EC will propose a cap on the revenues of companies that produce electricity with low costs, stating that low-carbon energy sources were making “enormous revenues”.
The European Investment Bank and the European Commission (EC) announced earlier this month they will provide US$10.1 billion in support to regions most affected by the shift away from fossil fuels amid a rampant energy crisis.
In May, the EU significantly ramped up and brought forward its solar deployment targets as part of its updated REPowerEU strategy, in order to reduce the bloc’s reliance on fossil fuels, in particular Russian gas.
Energy ministers from the EU will reconvene on 30 September to discuss the propositions that the EC will be presenting this week in order to combat the energy crisis.