Market Design
Initiative
EU Commission
DG Energy
Energy
This presentation reflects solely the views of the author
and does not bind the EU Commission
Intro:
Flexibilisation
Energy
Intro:
Flexibilisation
Old world…
world…
…new world
Energy
Intro:
Flexibilisation
Old Electricity World
New Electricity World
80% erneuerbare Energie
2035+
500MW
250MW
0MW
-250MW
-500MW
Energy
Intro:
Flexibilisation
Uncoordinated backup solutions
are costly
expensive
cheap
Energy
Intro:
Flexibilisation
Aggregation is key…
…but regulatory barriers hamper cross-border trade
Energy
Market Design Reform
Possible Elements
Energy
Market Design Reform:
NOT to be expected
• Re-opening ownership unbundling provisions
• Replacing 42 EU TSOs by “EU-ISO”
• Creation of a European Energy Regulator
• Prohibition of capacity mechanisms
• EU-wide RES support scheme
Energy
Market Design Reform:
Elements
Upgrading Wholesale Markets:
Possible topics
• Strengthen short term markets, including balancing
markets
• Allow prices to show real value of electricity
• Getting the price zones right
• Create a level playing field among energy sources –
adapt regulatory provisions for RES to markets
Energy
Market Design Reform:
Elements
Update Retail Markets
Energy
Intro:
Flexibilisation
Key issue: Coping effectively with deficits and peaks
Generation
surplus
Demand
Generation
deficit
•
•
Backup generation
Postpone consumption
(and earn money…)
•
•
Energy
Postpone generation
Activate consumption
(and earn money…)
Market Design Reform:
Elements
•
Coordinate State Interventions
=> Generation Adequacy
Energy
Market Design Reform:
Elements
Foster Regional TSO-Cooperation
= Regional Operations Centre (ROC)
= Border between Regional Operations Centres
5 Regions instead 42 TSOs
Energy
1
Central ROC
2
Nordic ROC
3
BI ROC
4
Iberian ROC
5
SEE ROC
Market Design Reform:
Elements
Adapt Institutional Framework
Energy
Thank you
Energy
Energy