The European Commission launched a market design initiative last year with a view to presenting proposals before the end of 2016. The European Climate Foundation (ECF) is supporting analysis conducted by the Regulatory Assistance Project (RAP), E3G, Institute for Sustainable Development and International Relations (IDDRI), ClientEarth, WWF, and Agora Energiewende on aspects of market design that are critical to achieving affordable, reliable, and timely decarbonisation of the power system.
During this breakfast meeting, RAP’s Michael Hogan presented key recommendations with respect to market design reforms. Particular focal points include:
- Continued efficient investment in low-carbon energy resources at the necessary pace and scale;
- Affordable integration of variable energy resources while ensuring system reliability, including the transition to a more flexible portfolio of resources;
- Delivery of the benefits of flexible energy demand through genuine consumer empowerment, innovation, and feasible business models;
- Timely retirement of high-carbon and inflexible power generation assets; and
- Improved governance to better align market and climate objectives and to facilitate collaboration and resource sharing among Member States.