Moving rapidly towards a fully competitive and integrated wholesale market is of paramount importance to reach our sector’s commitment to become carbon-neutral well before 2050 and attain the objectives of the Paris agreement.
Cost-effective decarbonisation and electrification must be underpinned by innovation and a sustainable market design. Liquid and well-functioning wholesale markets where prices reflect the actual system situation will sustain the market integration of renewables, support decentralised generation and empower consumers. In a more decentralised market with high shares of variable renewables, a true regional approach to system operation, the implementation of network codes and a more efficient use of the electricity infrastructure will be crucial. A consistent framework with harmonised adequacy assessments is also needed for transparent, competitive, cost-effective and open capacity markets optimising the use of available capacity and attracting sources of carbon-neutral, firm capacity (including renewables, storage and demand response) at regional level.
Eurelectric is actively engaged to ensure that the regulatory framework provides a sustainable market design that values energy, flexibility and assets’ contribution to system adequacy. This, together with a strengthened EU-ETS, will deliver the required signals for a cost-effective decarbonisation of the European economy.