Brussels raises the Iberian exception with a higher cap: it would save 13,000
The European Commission argues that the model of the Iberian exception that allows Spain and Portugal put a ceiling on the price of gas used to generate electricity is extended to the rest of the European Union with a ceiling of between 100 and 120 euros per Mwh. A softer limit than the average of 60 euros of the Spanish-Portuguese mark; a step with which he estimates a net benefit of 13,000 million euros for the block.
“Adding this mechanism above the inframarginal cap would thus produce a net profit of approximately 13,000 million euros on the 70,000 million of the inframarginal cap”, points out the working document that the Community Executive has circulated between the capitals in the framework of the negotiations to intervene in the energy market.
At this point, adds Brussels, the resulting net benefits will have a “beneficial effect on inflation”although he warns that one of the risks associated with the measure is the foreseeable increase in gas consumption, against the objective of seeking alternative sources after the break with Russia due to its invasion of Ukraine.
In this context, community services are committed to setting a maximum price “something enough so that gas-fired power does not become more attractive” than producing electricity from other technologies that set between 100 and 120 euros per megawatt hour, almost double the average limit of 60 euros that Brussels allowed to Lisbon and Madrid.
Upon her arrival at the meeting of EU Energy Ministers in Luxembourg, the third vice president and head of Ecological Transition, Teresa Ribera, said that Spain will support the countries that defend the extension of the Iberian mechanism because she understands that they feel “unprotected against the rise in prices.
Ribera commits to green hydrogen
In addition, the third vice president has called on the European Commission to accelerate and anticipate the necessary hydrogen legislation so that the European Union attract investment and be “fully prepared” in 2030 for this new energy vector.
“We do not want investors to think that in the absence of a clear framework they prefer to invest in other countries. Europe is called to be a relevant player in hydrogen energy and therefore we want for the Commission to move forward at an accelerated paceanticipating whatever is necessary to be fully prepared by 2030,” Ribera said upon arrival at a council of EU energy ministers.
“For us it is essential that there is a concrete regulation. We do not want to lose the renewable hydrogen race,” Ribera added about legislation that, when eventually approved, it will be capital for the development of infrastructures such as the future BarMara 300-kilometre underwater pipeline to transport green gas and hydrogen between Barcelona and Marseille.
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