As Europe continues in its efforts to build an internal energy market, it is faced with important questions on the implications of this work. Will markets provide technologies? What is the European strategy to face this issue in the medium/long term? Europe is taking a variety of actions to address these issues, such as voluntary "regional initiatives" for market integration through day-ahead and intraday trading as well as harmonised long term capacity allocation and capacity calculation. Regulators are also concerned about removing existing barriers to proper functioning of the markets (such as price caps, regulated enduser prices, lack of a level playing field for all types of generation; limited participation of demand response; lack of investment in interconnection capacity). With new technologies and intermittency come other questions, in particular regarding generation (and investment) adequacy. A number of countries have implemented or are considering capacity mechanisms under different approaches. A debate is ongoing on the need for compatibility of such mechanisms with the internal market and their cross-border implications (flows, competition, participation across borders, prices, etc.).
10th EU-US Energy Regulators Roundtable
Publication date: April 2013.
T. Gómez, Security of supply: National challenges requiring regional solutions (RI and capacity market developments), 10th EU-US Energy Regulators Roundtable, La Haya, Netherlands, 08-09 April 2013.