Affordable Energy: Unlock the Potential of Decentralised, Dispatchable Power

26 February 2025

EUGINE, the European association representing engine power plant manufacturers, acknowledges that the Clean Industrial Deal and the Action Plan for Affordable Energy published today are a step in the right direction. To achieve low and stable energy prices in both the short and long-term, policymakers must, however, better harness decentralised, dispatchable and decarbonised power solutions.

Stable and affordable electricity prices depend not only on stable gas prices but, more importantly, on overall system adequacy. The European Commission’s proposal for a simplified framework for capacity mechanisms and its plans to adapt the energy security framework are positive steps. However, further efforts are needed to accelerate the decarbonisation of dispatchable power.

In response to soaring energy costs following the Russian invasion of Ukraine, the EU had rightly prioritised a mix of electrification, renewable gases and hydrogen. Within the electricity system, molecule-based dispatchable power enhances energy security and grid stability while reducing infrastructure costs. It also acts as a critical safeguard, keeping prices in check when other generation sources are unavailable.

To manage rising investment needs over the next decade, it will be essential to optimise all available technologies, energy carriers and infrastructure.