Brussels, 20 November 2020 | Significant deployment of renewable energy sources (RES) is required to achieve the EU 2050 net zero target proposed in the Green Deal as well as the raised ambition of the EU 2030 targets. The recently published EU Offshore Renewable Energy Strategy sets out the scale of the challenge, estimating that an installed capacity of at least 300 GW of offshore wind alone will be needed by 2050. Energy markets will be vital to help achieve this scale-up at an acceptable cost. Despite the high fixed cost structure of renewables as well as the need for predictable revenue streams, market-based remuneration of renewables in the energy market offers the most cost-efficient way of achieving decarbonisation. Recent market reforms, including the harnessing of demand-side flexibility, and ensuring RES can achieve revenue streams from multiple markets, need to be fully implemented to allow markets to realise their full potential in a high renewables system.
Read the full position paper below.