The EU’s Policy to Finalise the Internal Electricity Market: An Initiative of the Commission Based on False Assumptions?

Abstract:

Despite several attempts at completion, the EU's internal electricity market remains fractured into weakly interconnected submarkets. With a recently published initiative to extend cross-border power lines, the European Commission is striving for better market integration and more competition.

Recent changes in Germany's energy policy seem to complement this initiative, increasing the pressure for a more interconnected European energy market. They will have a deep impact on the European energy system and make a European response imperative. Yet, given the fragmentation within the European electricity market, their effect will probably be the opposite.