Recommendations for a future-proof electricity market design in Europe in light of the 2021-23 energy crisis
Pollitt,Michael G. von der Fehr,Nils -Henrik M. Willems,Bert Banet,Catherine Le Coq,Chloe Chyong,Chi Kong
Pollitt,Michael G.
von der Fehr,Nils -Henrik M.
Willems,Bert
Banet,Catherine
Le Coq,Chloe
Chyong,Chi Kong
Abstract
In this paper, we discuss electricity market design in Europe in light of the 2021-23 energy crisis, drawing on several of our Centre on Regulation in Europe (CERRE) reports. We outline the relevant theoretical background with respect to wholesale electricity markets, retail electricity markets, excess profits regulation, renewables support schemes and emergency interventions. We next outline the responses of the European Union, France, Norway, the Netherlands and Great Britain to the crisis. This allows us to make a number of recommendations about the future design of the electricity market in the light of theory and recent experience. These include a role for long-term contracts, the extension of the single market, the place for increased price granularity, appropriate energy taxation and the necessity of better monitoring of National Energy and Climate Plans to ensure adequate aggregate investment.
Description
Date
2024-05
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
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Journal Issue
Keywords
Electricity market design, Energy crisis, Retail electricity, Wholesale electricity
Citation
Pollitt, M G, von der Fehr, N -H M, Willems, B, Banet, C, Le Coq, C & Chyong, C K 2024, 'Recommendations for a future-proof electricity market design in Europe in light of the 2021-23 energy crisis', Energy Policy, vol. 188, 114051. https://doi.org/10.1016/j.enpol.2024.114051
License
info:eu-repo/semantics/openAccess