European Commission > Energy > Intelligent Energy Europe

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

Project brief
Key action: Electricity production
Status: Ongoing
Coordinator: Daniel Huertas Hernando
SINTEF Energy Research, Norway
E-mail: Daniel.Huertas.Hernando@sintef.no
Partners: Vienna University of Technology (Technische Universitaet Wien) (TU Wien), Austria
3E nv, Belgium
European Photovoltaic Industry Association (EPIA), Belgium
European Wind Energy Association (EWEA), Belgium
Friends of the Supergrid (FOSG), Belgium
RTE Réseau de Transport d'Electricité SA (RTE), France
TECHNOFI SA (TECHNOFI), France
APX Holding B.V. (APX), Netherlands
Iberdrola Renovables Energía S.A. (IBR), Spain
Universidad Pontificia Comillas (Comillas), Spain
Website: http://www.market4res.eu
Benefits: • Facilitate the dialogue among relevant EU stakeholders
• Effectively contribute and ensure an open and transparent debate regarding the evolution of the EU Target Model post 2020
• Involve the relevant market actors in the field, committed to adopting/implementing the results of the project
Keywords: electricity market design, target model, generation fleet, 2020 targets
Duration: 01/04/2014 - 30/09/2016
Budget: EUR 2 445 603 (EU contribution: 75%)
Contract number: IEE/13/593/ SI2.674874

Summary

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.

Lessons learnt
  • Not yet available, project is still in the first phase.
 

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