November 2022 / Policy Papers
The Electricity Market Design Revision
EASE has finalised a paper on the upcoming electricity market design revision, highlighting how energy storage can enable a carbon-neutral future.
More than ever, energy independence, security of supply, sector integration, and decarbonisation are guiding policymakers’ actions. The electricity market design needs to do justice to consumers and reap the benefits of low-cost green solutions. It is key to leave behind polluting fossil fuels, whose influence is dominating the price of electricity. Most system flexibility is currently provided by fossil gas: this has led to an insecure energy system and forced the European Union to depend on energy imports. There needs to be a change in paradigm, with the Clean Energy Package as a foundation, where energy storage becomes a critical part of the energy system.
Legislators should look into securing new investments via long-term guarantees while maintaining short-term dispatch based on competitive markets as at present. In particular, EASE identifies a list of changes as needed to ensure a renewable-based and secure energy system.
The paper aims to answer:
- How can the market design reform support energy security?
- What can be done to maximise renewables’ penetration?
- What is the role of gas “peakers” in today’s energy system? What can be done to replace them with greener and cheaper solutions?
- How to attract long-term investments in energy storage?
- How to ensure deployment of longer duration energy storage while maintaining a level-playing field?
- How to achieve forward-looking system planning for a cost-effective energy transition?
Webinar recording available!
On 7 December 2022 EASE hosted a webinar on electricity market design revision and discussed how it can enable energy storage for a carbon-neutral future together with a panel of speakers from Iberdrola, CellCube, Fluence, Enel X. Watch the recording here.