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Post 2020 framework in a liberalised electricity market with large share of Renewable Energy Sources (MARKET4RES)

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The project focuses on electricity market design to support a more efficient integration of renewable electricity (RES-E) into the pan-European electricity system, in line with the 2020 objectives and their follow up towards the forthcoming 2030 targets.The Market4RES consortium anticipates that new market mechanisms are needed to complement the Target Model (TM) expected to be fully implemented by 2015 (including day-ahead price coupling, cross-borders intraday continuous trading and long-term cross-border capacity allocation with harmonized rules at European scale). The TM has significant strengths: it will help making the most of existing infrastructures at a European scale. However, crucial concerns remain about the suitability of existing instruments to trigger the new investments required to reach a progressive de-carbonization of the electricity sector in a cost-effective way, while ensuring system adequacy and security of supply.The Market4RES consortium will address these issues together with relevant stakeholders via two separate work streams:1. Assuming the current generation fleet as an input and current implementation status of the target model: The focus is on determining appropriate, yet novel, instruments (and their subsequent accompanying national energy policies) for increased renewable electricity generation in support of the 20/20/20 targets;2. Assuming the future generation fleet (beyond 2020) as a result of current market designs, and taking into account possible future changes in market design beyond the existing TM: The focus is on developing necessary additions or complementary instruments to the current design, which will induce investment incentives and phase out support schemes in the long term without compromising system adequacy or security of supply.

Results

  • Recommendations for adaptation of existing market conditions for RES-E with regards to the optimization of the European electricity system up to 2020, based on an overview of the opportunities, challenges and risks for RES deployment in an EU integrated market with full TM implementation;
  • Proposals for market mechanisms helping the deployment of RES electricity in a cross-border and transnational context, involving further use of the electricity system flexibility: novel instruments (and their subsequent accompanying national energy policies) are compared for renewable electricity generation support schemes to meet the 20/20/20 targets;
  • Options and proposals for further cost-optimization of the overall electricity system and the related regulations beyond 2020, with an emphasis on issues faced by each Member State: additions to the current market design affecting directly or indirectly the decisions made by market parties on their new generation investments (but also on whether or not they should retire existing assets);
  • Proposals for implementation plans of the recommended policy, legislation and regulation options across the renewable energy sector and further provisions of non-technological recommendations to the post 2020 horizon;
  • The involvement of relevant market players in the value chain who are ready to adopt/implement the project results.
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Lessons learned

  • Not yet available, project is still in the first phase.
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Partners and coordinator

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Contact

SINTEF Energy Research
Norway
Contact point: 
Name: 
Daniel Huertas Hernando

Budget

In brief

Duration:
01/04/2014 to 30/09/2016
Contract number: 
IEE/13/593/ SI2.674874