EU Energy Policy

Subsidies in Europe may fall faster for renewables than for gas

While renewable power generators in Europe may operate without subsidies in the coming years, gas- and coal-fired generators may be reliant on capacity payments for longer While renewable power generators in Europe may operate without subsidies in the coming years, gas- and coal-fired generators may be reliant on capacity payments for longer.
By Andreas Walstad 11 January 2019 0 33827
BayWa's Don Rodrigo solar plant in Spain (BayWa)

A report released this week by the European Commission has highlighted that national subsidies for renewables can be phased out over the next decade, raising questions about future capacity payments to gas- and coal-fired plants.

An expected rise in European power and carbon prices over the coming years could mean that renewable energy producers will be much less dependent on subsidies. At the same time, national capacity payments for gas-fired plants look set to continue.

The report noted that slowly rising wholesale power prices would...