The European Council approved the electricity market design (EMD) reform at its session on 21 May in Brussels, opening a new page for energy pricing and enabling competitive funding for nuclear power projects.

The council said in a statement on 21 May that two-way contracts for difference (CfDs) or equivalent schemes can apply to investments in new power-generating facilities based on wind energy, solar energy, geothermal energy, hydropower without reservoir and nuclear energy.

Under the CfD scheme, a public authority compensates the energy producer if market prices fall too steeply, but it collects payments from the producer if prices are too high. The range is defined by a “strike price” agreed between the two parties.

The council vote followed a vote in favour of the new package by the European Parliament on 11 April.