EU lawmakers drop call for cap on power plants' windfall revenues

illuminem summarizes for you the essential news of the day. Read the full piece here in Reuters or enjoy below

🗞️ Driving the news: The European Parliament's energy committee has decided to abandon a proposal to cap power plants' windfall revenues if another energy price crisis arises, a move that the energy industry vehemently opposed
• The aim is to expand renewable energy and safeguard consumers from price spikes like those seen after Russia's invasion of Ukraine last year

🔭 The context: the European Parliament's lead negotiator, previously proposed the cap to raise funds that countries could use to shield their citizens from high bills during price spikes
• However, industry groups were against the cap, arguing it would deter investors when actually significant investments are needed in low-carbon energy generation

🌎 Why does it matter for the planet: The decision made will have far-reaching implications for the renewable energy sector, consumer protection, and the broader strategy of the EU's energy transition

⏭️ What's next: EU lawmakers and nations are negotiating electricity market reforms, aiming to finalize before next year's Parliament elections
• Key disputes, including whether countries can subsidize current power plants and use the revenue for domestic industries, have impeded consensus on negotiation positions

💬 One quote: "I think that's more predictable and it would give more stability to the market. But not all political groups saw it the same way." (Nicolas Gonzalez Casares, European Parliament's lead negotiator)

📈 One stat: Despite significant falls from record highs of above 700 euros/MWh last August, average prices are still more than double their 2019 levels, according to the International Energy Agency

Click for more news covering the latest on energy transition