The market design proposal: the journey has only begun

Abstract:

On 30 November 2016, the European Commission issued the Clean Energy for All Europeans package, including a proposal for reforming the electricity market design.

The reform will contribute to the transition of Europe’s power sector towards a decarbonised future, which accommodates renewable energy sources (RES) whilst avoiding the negative consequences for the security of supply (due to RES intermittency) and for cross-border trade (due to the fragmentation of national support schemes).

This commentary argues that the proposal includes several important innovations, yet most of the work lies ahead and requires significant political will.

• Prif ffynhonnell