The Electricity Market Design Revision's Impact on Security of Supply, Flexibility, and Energy Storage

The European Commission presented its proposed changes to the Electricity Market Design on 14 March 2023. Although the scope of the proposal is limited, it has the potential to significantly affect the energy storage industry. The proposal aims to maintain the current price signals and overall framework of day-ahead and intraday markets while introducing some adjustments, striking a good balance between public involvement and market-based mechanisms. The main goals of the proposal are to promote investments in renewable energy and flexibility, minimize energy price volatility, and safeguard consumers against price spikes. The main provisions that will potentially affect the energy storage sector are thoroughly analysed in this document, trying to also identify potential areas of improvement.

This analysis also include the European Commission Recommendation on Energy Storage, which builds upon the European Commission Staff Working Document on Energy Storage, which recognises that “energy storage can play a crucial role in the current and future energy system”. The Recommendation complements the Electricity Market Design revision.