SolarPower Europe Demands EU Windfall Measures to Target Actual Profits Only

Trade body SolarPower Europe has said that windfall revenue measures of power generators in Europe should target actual profits only and make an exemption for renewables that do not make windfall profits. It “should therefore not be subject to windfall measures,” it further added. The move comes even as energy prices across Europe test new highs, with cost of power/MWh in cases being 10 times the cost a year back. 

The trade firm claims that most solar farms in Europe receive a fixed price from a government-backed support program or a power purchase agreement with an industrial consumer for the electricity they generate.

According to the association’s statement, preliminary calculations from Germany indicate that about two-thirds of solar PV electricity does not generate windfall profits.

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“The only structural way out of the crisis is to increase renewable energies, which are the ‘energy insurance of Europe,'” concluded the trade firm, adding that investment decisions must be made with stable regulatory frameworks. Plans for accelerating the adoption of solar PV, for both residential and commercial consumers, should also be included in emergency measures, as this will significantly lessen the impact of high gas prices.

The EC will propose a cap on the profits of businesses that generate electricity at a low cost, according to EC President Ursula Von der Leyen, who stated last week that low-carbon energy sources were generating “enormous profits.” Amid a raging energy crisis, the European Investment Bank and the European Commission (EC) announced earlier this month that they will give US$10.1 billion in assistance to regions most affected by the transition away from fossil fuels.

As part of its updated REPowerEU strategy, the EU significantly increased and advanced its solar deployment targets in May to reduce the bloc’s reliance on fossil fuels, particularly Russian gas. The EU’s energy ministers will meet again on September 30 to go over the proposals the EC will make this week to address the energy crisis.

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Recently, the National Solar Energy Federation of India (NSEFI) and SolarPower Europe jointly published the best practice guidelines for Engineering, Procurement, and Construction (EPC) of solar power projects in India.