BRUSSELS – In the context of a European Commission public consultation on energy market design, a group of market experts and thought-leaders (RAP, IDDRI, Agora Energiewende and E3G), supported by the European Climate Foundation, set out a joint vision on the energy market challenge.
The European Union has set itself the target of achieving a share of at least 27% of renewables in the energy mix by 2030. As a result, it is clear that the internal energy market (IEM) must be developed in a way that ensures the efficient integration of an increasing share of renewable energy sources.
In reforming the European energy market to meet this challenge however, the four organisations warn that a number of outstanding issues will need to be addressed, at risk of otherwise not being able to deliver EU climate and energy targets. The solutions brought forward by RAP, IDDRI, Agora and E3G include:
- Continued investment drive in renewable energy sources through government managed mechanisms,
- An EU wide strategy to manage the phase-out of carbon inflexible assets,
- A wholesale market design that supports more efficient sharing of energy resources across the EU (regional integration),
- A consumer focused reform that enables full participation of aggregated energy demand and storage,
- An appropriate governance structure to ensure efficient delivery of the required outcomes.