EU ‘energy bank’ idea finds a champion in quest to curb market volatility
The EU's gas and power markets should benefit from a new European energy bank to reduce market volatility, Benjamin Lakatos, the CEO of energy company MET Group, told MLex in an interview. Such a central bank-like institution could stabilize price swings with tools — including liquidity injections and circuit breakers — not available in energy markets today.
Source: MLex
A challenge, though, would be implementing the idea within the EU's institutional framework, and other options do exist, experts say.
The EU electricity market has expanded significantly since liberalization in the 1990s, but the new geopolitical environment has sharply increased price volatility.