Energy Transition and the Electricity Market: An Exploration of an Electrifying Relationship
Center of Energy Economics Research Policy Paper, University of Groningen, No. 1, 2017, ISBN: 978-90-367-9679-8
70 Pages Posted: 23 Mar 2018
Date Written: March 20, 2017
While achieving the ambitious energy transition targets is important to society, it is also costly. To keep these costs as low as possible and, thus, increase the chances of successfully accomplishing the energy transition, upholding the basic principles of the organisation of the electricity market to the greatest possible extent is required.
The author discusses these basic principles and the extent to which they must be adjusted because of the energy transition. The topics discussed include the wholesale market pricing, investments in power stations, the way in which the network operators keep the electricity network in balance, the opportunities which suppliers have to increase consumer involvement in the electricity market, citizens’ desire for setting up local energy cooperatives, the increase in the degree to which the electricity markets in different countries are interconnected and the relationship with the European Union’s emissions-trading system.
Keywords: energy transition; electricity market; regulation; emissions trading
JEL Classification: D00, D20, D40, L94,Q54
Suggested Citation: Suggested Citation