Renewables

Wind, solar investors threaten to leave Europe because of revenue cap

solar wind investments EU price cap

Photo: Erich Westendarp from Pixabay

Published

October 3, 2022

Country

Comments

comments icon

0

Share

Published:

October 3, 2022

Country:

Comments:

comments icon

0

Share

European wind and solar power industries associations warned that investments could go elsewhere after EU energy ministers voted to introduce revenue caps for wind, solar, nuclear and coal power generation.

Governments need to act to help families and businesses pay their energy bills, but the latest decisions made by European Union energy ministers could worsen the energy crisis, said WindEurope.

SolarPower Europe said it is deeply concerned about patchwork implementation.

According to WindEurope, emergency regulation puts renewable energy investments at risk.

The new EU regulation does nothing to stop national governments from introducing additional taxes and taking uncoordinated measures on different types of power generation, WindEurope said.

WindEurope: Investors will simply go elsewhere

The organization said the additional measures include taxes on electricity producers’ total revenue, rather than their profits, and that it would stop investments in renewables.

“Investors will simply go elsewhere. To the US for example, where the Inflation Reduction Act has big tax credits for renewables investments,”, WindEurope said.

It advised national governments that deviating from the EU-wide cap or applying additional taxes on electricity producers would stop investments in green energy and make it much harder for Europe to get out of the energy crisis.

SolarPower Europe: We need an emergency plan for boosting renewables

SolarPower Europe has called on member states to:

  • stick to the EU-level cap set at EUR 180 per MWh,
  • apply the cap on net market revenues only, and
  • collect revenues on a monthly portfolio basis in order to take into account all the market revenues and expenses as well as the hedging costs.

The organization claimed that the rise in energy prices was driven by Europe’s dependency on expensive and volatile fossil fuel imports.

“We call on the European Commission to propose an emergency plan for boosting renewables now, and land that with the [European] Council before end of the year, applying the same Art 122 emergency procedure,” said SolarPower Europe.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Western Balkans urged to step up just transition away from coal

Western Balkans urged to step up just transition measures

02 June 2025 - In its guidelines for the just transition, the Energy Community Secretariat said the Western Balkans lack policies and measures

Serbia drafts just transition action plan public debate

Serbia drafts just transition action plan

30 May 2025 - The Ministry of Mining and Energy has published a draft just transition action plan and launched a public debate

Regional Power Sector Exchange Western Balkans disitribution system operator dso grids ohrid giz

Third Regional Power Sector Exchange in Ohrid: Power grids at core of energy transition

30 May 2025 - The third Regional Power Sector Exchange of the Western Balkans gathered over 80 energy professionals from the Western Balkans

two solar power plants egesa enerji vojvodina

Turkish Egesa Enerji to build two solar power plants in Serbia’s Vojvodina province

30 May 2025 - Turkish company Egesa Enerji has launched a project to build two solar power plants in Vojvodina, with a total nominal capacity of 8.6 MW