The president of European trade group Eurelectric Johannes Teyssen has urged the European Commission and national policymakers to “set its energy system back on track on a more market-based and cost-efficient path”.

Teyssen (pictured) – who is chief executive of German power company E.ON – said that next year’s intake of a new European Parliament and Commission offered huge opportunities for the region’s power sector in terms of innovation and technological leadership.Johannes Teyssen

But he stressed that the regulatory framework needed to be improved.

At a meeting in Brussels he told  EU Commissioner for Competition Joaquin Almunia that he had “great expectations for the state aid guidelines revision”.

“State aid control is an excellent tool for ensuring energy market integration and it is my strong belief that mature technologies must be integrated into the market,” he said.

He added that “carbon prices are the most suitable instrument for driving investments”, including in mature renewables.

“The state aid review should ensure a level playing field among EU members and among technologies, and facilitate research, development and demonstration of immature technologies,” he continued.

Teyssen was speaking just days before the European Commission is set to propose updated guidelines on environmental and energy state aid.