Poland eyes boost for nuclear energy in EU power market reform

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>Poland eyes boost for nuclear energy in EU power market reform</title></head><body>

By Kate Abnett

BRUSSELS, Feb 6 (Reuters) -Poland has urged the European Union to use upcoming reforms to Europe's electricity market to do more to support investments in nuclear energy, according to a document seen by Reuters.

The European Union is set to propose a power market upgrade next month, to attempt to avoid a repeat of last year when cuts to Russian gas supply sent European power prices soaring, since gas plants often set overall electricity prices in the current EU system.

"We must ensure a positive regulatory environment for investing in all zero- and low emission technologies. This is especially important for nuclear power projects," Poland said in a paper shared with EU policymakers, adding that nuclear projects typically require high upfront investments.

The call from Warsaw comes as countries are squaring off over the role for nuclear energy in other EU policies. Negotiations this week on new EU renewable energy targets were cancelled amid a disagreement over whether to expand the targets to include hydrogen produced with nuclear power.

The low-carbon energy source is championed by EU countries including France, which has a large nuclear power fleet, and Poland, which plans to build reactors to help phase out coal. Germany and Austria are among its opponents, citing concerns over nuclear waste disposal and safety.

Poland said the EU should also make it easier for countries to launch electricity capacity mechanisms and temporarily lift an emissions limit - which could allow such schemes to support coal power.

In a capacity mechanism, a government pays power plants to guarantee they remain available to produce electricity when needed. Current EU rules only allow countries to do this as a last resort, and Brussels has raised concerns that the schemes may distort competition in energy markets.

The EU has said its upcoming reforms will aim to expand Europe's use of long-term contracts that provide power plants with a fixed price for their electricity, to try to make energy bills more stable and less tied to volatile short-term markets. Poland said it would support expanding these types of contracts.

Reporting by Kate Abnett
Editing by Tomasz Janowski


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.