EU POWER ASSOCIATIONS CALL FOR AN UPDATED EU ENERGY MARKET DESIGN
The energy transition requires us to think whether the current electricity market design can efficiently meet the decarbonisation target while ensuring adequate level of Security of Supply at a least cost.
In the last years, short-term wholesale electricity prices have fallen drastically, as a result of a reduction in demand due to the economic crisis, the financially supported introduction of new low-carbon generation capacities with low variable costs, low commodity prices, and a very weak carbon price signal. They are now far below the long-term LCOE of conventional and RES power plants.
Some of these conditions affecting short-term energy only markets are persistent and bound to be exacerbated as the decarbonisation process moves forward. Scarcity pricing and the introduction of a liquid European intraday market are no-regrets reforms. However a market design relying only on short term prices and a poor CO2 price will fail to trigger an efficient investment path, for a secure European energy transition.
Short term prices, which define the generator’s revenue and the consumer’s bill, are too volatile and sensitive to both macroeconomic indicators and public decisions. The European market must provide all consumers with a competitive, secure and sustainable electricity supply. For this reason two measures should be considered a priority: a functionning ETS in line with the EU climate policy ambitions, and the implementation of capacity mechanisms ensuring the achievement of the targeted level of security of supply.
Documents
- Joint statement on cam UE - may 2016 (PDF - 240.9 kb)
Position
- Joint Statement on capacity mechanisms
- UFE answer to PICASSO consultation
- Advocating for a flexible and coherent approach in the governance of the Energy Union
- Position Paper - Details of the planned Capacity Reserve in Germany
- UFE answer to CEER consultation on Flexibility Use at Distribution Level
- Demand Response towards a major market failure
- UFE’s study “Energy Data, a new economic El Dorado?”
- EU POWER ASSOCIATIONS CALL FOR AN UPDATED EU ENERGY MARKET DESIGN
- UFE supports the creation of an ambitious price corridor as part of the European carbon market
- Declaration of several French actors in favor of the capacity mechanism
- Contribution UFE - Consultation on the Review of Directive 2012/27/EU on Energy Efficiency
- Preparation of a new Renewable Energy Directive for the period after 2020
- CONTRIBUTION OF THE FRENCH ELECTRICITY SECTOR TO THE PUBLIC CONSULTATION ON A NEW ENERGY MARKET DESIGN
- Policy Paper - Review of the energy efficiency directive
- Response from the UFE : Consultation of the European Commission on state aid for energy and environment
- Consultation of the European Commission on a framework for energy and climate policies for 2030
- Technologies subject to feed in tariffs analysis of the support scheme
- Position on generation adequacy, capacity mechanisms and the internal market in electricity
- UFE response to the european commission consultation (...)
- the ETS System requires optimization to guarantee (...)
- ETS system interventions - position of the electricity sector
- response to the public consultation about guidelines on fundamental electricity data transparency
- 2030 ENERGY-CLIMATE PACKAGE : « 2030 package : A pragmatic shift in focus for Energy & Climate policies »