Moving rapidly to a fully competitive, integrated wholesale electricity market is paramount to our industry’s commitment to become carbon-neutral before 2050. Why? Because markets are the best tool to ensure the cost-effectiveness of the whole process.
However, getting there requires markets that are fit for purpose – markets that are equipped for the fast-growing share of variable renewables, like wind & solar power. Markets should therefore value not only energy flexibility but also system adequacy. They should also be better integrated across all timeframes and political interference in case of price spikes should be limited. The implementation of the Clean Energy Package and the EU market guidelines will only partially respond to this objective. It will ensure a regional approach to system operation, improved pan-European adequacy assessments and a more efficient use of the electricity infrastructure but more work remains to be done, in which Eurelectric intends to play its part.
Beyond market design, the investability of the electricity sector is of crucial importance. Some €100bn/ year are needed in clean generation and storage, in addition to €35bn/year in distribution grids, between today and 2030. The electricity sector is ready to play a leading role in these investments provided a consistent combination of market design, regulatory framework and energy policies are in place (including sustainable finance) to deliver the needed investments to reach carbon-neutrality by 2050.
Electrification is beyond any doubt the number one solution for Europe’s decarbonisation, applicable to a growing number of transport and heating/cooling situations (why? See here). Where direct electrification is no feasible or efficient yet however, Eurelectric also contributes to the debate on energy system integration, formulating solutions for the conversion of clean electricity in other vectors.
Last but not least, Eurelectric also aims at ensuring continued recognition that EU energy markets need appropriate treatment under the new EU financial regulatory proposals (MiFID/R, REMIT, EMIR, MAD/R and CRD).