Winter has started, and EU governments and policymakers are still debating how best to contain the dramatic impact of high energy prices on households, industry and the whole economy. In parallel, the European Commission has indicated its intention to formulate proposals for longer-term adjustments to Europe’s current electricity market design.
Against this background, the Centre on Regulation in Europe (CERRE), an independent think tank focusing on the regulation of network industries has, throughout 2022, been analysing the impact of the energy crisis and climate goals for Europe’s wholesale and retail electricity market designs.
This work is now culminating with the release of Recommendations for a Future-Proof Electricity Market Design, an original, 200-page in-depth study authored by CERRE academic co-directors Profs Michael Pollitt (University of Cambridge) and Nils-Henrik von der Fehr (University of Oslo), CERRE research fellows Profs Bert Willems (Tilburg University), Catherine Banet (University of Oslo) and Chloé Le Coq (University Paris-Panthéon-Assas, Stockholm School of Economics), and external contributors Prof Anna Rita Bennato (Loughborough University) and Daniel Navia (University of Cambridge).
The report formulates more than 70 policy recommendations to shape a European electricity market that is resilient to shocks and supports the accelerated rollout of renewables over the next three decades. It emphasises the importance of distinguishing between short-term crisis management and long-term market reform initiatives. Wartime interventions should be proportionate, short-term and reversible, while sensible long-term reform proposals that support the energy transition may not help with the current crisis. Likewise, it is essential to distinguish between pure market design elements and complementary mechanisms aiming to address remaining market failures.
Below are the key takeaways for wholesale and retail markets regulation. A longer list of policy recommendations and the full analysis can be found in the report. For more information, get in touch with Albéric Mongrenier, CERRE Director for Energy, Mobility and Sustainability.
Energy & Sustainability
Energy & Sustainability
Energy & Sustainability
Energy & Sustainability
Cross-sector
.Energy & Sustainability
.Tech, Media, Telecom
Energy & Sustainability
Energy & Sustainability
Energy & Sustainability
Energy & Sustainability
Energy & Sustainability
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Avenue Louise, 475 (box 10)
B-1050 Brussels – Belgium
T.: +3222308360
E-mail: info@cerre.eu
Avenue Louise, 475 (box 10)
B-1050 Brussels – Belgium
T.: +3222308360
E-mail: info@cerre.eu
BE 0824446055 RPM Bruxelles
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