German energy industry welcomes extension of EU emergency measures

German industry associations have welcomed a decision by EU energy ministers to extend temporary measures to reduce dependence on Russian gas and protect EU energy consumers from price spikes. The package of emergency regulations also allows fast-tracked approval for new renewable power facilities. German Wind Energy Association (BWE) president Bärbel Heidebroek said the decision was “a strong sign that the EU is serious about its plans to transform the European energy supply.” German utility association BDEW released a statement from its head, Kerstin Andreae, saying that “measures implemented in Germany under the ordinance have already significantly accelerated the expansion of onshore wind energy” and extending it was “the right decision.” However, BDEW was critical of the correction mechanism to alleviate price peaks. So far, prices have not been high enough to trigger the mechanism, Andreae noted, but she warned that intervening in the market could have “negative consequences.”

 The European Council adopted the package of three emergency regulations in December 2022, in response to the threat Russia’s invasion of Ukraine poses to EU energy security. Measures to coordinate gas purchases came in on 30 December 2022, and will be extended until the end of next year. Rules to accelerate renewable power development were originally in place for 18 months: they will now apply until June 2025. The market correction regulation, designed to limit prices in EU gas markets, came into effect in February 2023, and will now run until January 2025.