‘It’s catastrophe without us’: Metals exec puts EU on notice over green power supply

The EU must “walk the talk” in helping electric-intensive industries secure competitive green power after rejecting a plan put forward, says a Greek metals executive – warning the renewables sector faces “catastrophe” without companies like his as buyers.

The EU recently adopted a new Electricity Market Design to address shortcomings in the bloc’s power system that were laid bare by the energy crisis sparked by Russia’s invasion of Ukraine.

The reforms, which it is hoped can boost the uptake of renewables and enhance industrial competitiveness, included new and reinforced provisions for electricity grids and flexibility.

However, speaking at the RE-Source 2024 summit in Amsterdam yesterday, Nick Keramidas, general manager of European affairs & regulatory advocacy at Greek industrial conglomerate Metlen Energy & Metals, said that despite some “slightly positive hints or attempts in there, we expected a bit more.”

That report "re-established the need to smartly and cost-effectively, de-risk long-term PPAs [Power Purchase Agreements] between [renewables] producers and electro-intensive consumers,” he said.

Sections of that report “pinpoint the exact blocking issue” that holds back electro-intensive companies from harnessing more renewables and signing more PPAs and “mitigating the costs of matching industrial demand with variable renewable generation.”

“As luck would have it, a targeted and smartly fleshed out scheme is already on the table to address this barrier, and actually on the [EU Commission Directorate-General for Competition’s] table,” he said.

“If our policy makers are ready to walk the talk, I would respectfully invite them to start there.”

Keramidas said he was referring to the “Green Pool” scheme. The EU Commission last year rejected a Greek government initiative for the scheme, in which electro intensive industries would pool their demand for green power to help lower operating costs.

Eurometaux, the European Metals Association, said at the time that it was “shocked” at the decision as the scheme “ticks all the boxes for decarbonisation, competitiveness, and renewables deployment.”

Electricity-intensive metals producers are still “on their knees” from the energy crisis, it said, with its smelters facing an “existential threat from projected high energy prices” throughout the rest of the decade.

Keramidas said that removing metals companies’ smelters from the green power system would raise renewables curtailments by a “staggering” amount, he said. “Can you imagine that? It's a catastrophe.”

He stressed the importance of having “massive and concentrated and predictable” power demand centres for the energy transition.

“If we managed to secure competitive prices, competitive access to renewable electricity for our existing electrified industry,” he said Europe can “reclaim its seat at the global table.”

“It can also ensure robust economic growth,” he said. “And it can secure millions and millions of jobs, well-paid jobs, permanent jobs, and social cohesion.”

His comments come at a time when Europe’s power prices are significantly above those in China and the US, hurting industry on the continent.

“Creating a success story around the existing electrified industry of Europe is by far the best electrification action plan anyone can think of,” he said.

“Let's stop reinventing the wheel each and every time, if you make it work for us, electro-intensive industries of Europe, trust me, where it can be done, it will be done.”