Energy reforms have become major headache for Europe. The European Commission knows that it needs a system that guarantees competitiveness and achieving this kind of system will wreck the current system of premiums. Besides being costly (in 2011 power companies received 60 billion euros in aid), the premiums do not work.
EU leaders will unveil changes soon. We expect to see a system of subsidies and less intervention from member state governments.
As is the case in any business deal, all parties involved must give up something in order to reach a reasonable solution. Traditional power companies and renewable energy companies must seek a compromise. This is good. The main downside is that companies and households could end up with tariff prices that are twice as high as they were before. The rate will go from 100 euros per megavatio hour to 200 euros.
