A market fit for renewables — how will the Market Design Initiative help?
Our power systems are undergoing significant changes. Fast-paced technological evolution and a clear commitment to decarbonise power generation are leading to a steep rise in the share of electricity from renewable sources (RES-E). The shift towards RES-E will continue as it is a key condition of fulfilling the European Union's obligation under the Paris agreement on climate.
The physical nature of RES-E — more variable, less predictable and more decentralised than traditional generation — poses a number of challenges for the management and running of our power systems. Crucially, the uptake of RES-E will depend on their cost-efficient market integration. One of the chief aims of the Market Design Initiative (part of the 'Clean Energy for All Europeans' package) is to align market rules so as to provide the right market incentives for the energy transition.
Market Design rules touch on a variety of subjects, from electricity trading to grid operation rules. Despite their technical nature, these rules have a tangible impact on energy prices. Experience has shown amongst other things that imperfect cooperation between Member States and uncoordinated state interventions can cause significant extra costs to our energy bills. Better cooperation between Member States and better use of market signals, as proposed by the Market Design Initiative, will help avoid such extra costs.
Session attendees can hear from and be able to question a distinguished set of panellists. These include business leaders, civil society representatives and EU institutional representatives involved in ongoing legislative discussions under the Market Design proposal.