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Europe’s electricity market: Ensuring supply security in the transition to renewables

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The on-going transformation of the EU power industry is leading policymakers to re-evaluate the current design of electricity markets. Electricity generated from renewable sources has become one of the most important sources of electricity, paving the way for a transition towards a low-carbon energy system. The structure of the electricity market will have to adapt to these changes. This means developing new business models and a new regulatory framework which provides a truly European dimension to security of electricity supply while respecting national specificities. With the new regulatory design for the EU electricity market taking shape, there are concerns in the sector regarding the new rules under discussion in the on-going “trilogue” talks between EU institutions. In particular, negotiators will have to find a compromise on the tools Member States can use in order to ensure security of supply during this transition, such as capacity mechanisms. EURACTIV organised this event to discuss capacity markets and their role in securing electricity supply in the EU. Questions included: - What place for capacity mechanisms in the new market design? - Why capacity mechanisms? Who do they benefit? - What is best practice for designing capacity mechanisms? - Who determines a sufficient level of security of supply and with which tools? - How should the new electricity market be designed in order to facilitate the energy transition?
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