The liberalisation of power markets has led to substantial changes in the way electricity is generated and used. It created competition in a traditionally monopolistic and conservative industry, allowing new business models to emerge and new players to challenge incumbent utilities. The renewable energy revolution, together with customer empowerment and growing demand flexibility, continues to force change on Europe’s unique power system. In the coming years, we will see 28 countries overhaul the way a vital service such as energy supply is designed.
Transmission system operators need to anticipate uncoordinated flows and take measures to ensure the secure supply of energy. Uncertainty about cross-border capacity calculations makes the process difficult to plan accurately.
The market is divided into bidding zones, and is based on the assumption that trading opportunities within those zones are unlimited. Some argue, however, that trade between bidding zones is limited to the level of cross-border capacity. That can create boundaries on how much trade is technically feasible. And many countries are reticent to split their national bidding zones, even though it would contribute to more competition and cross-border market efficiency.
Innovative technologies are becoming technically and economically viable, translating into business opportunities. For these new businesses to prosper, they must develop under the right regulatory framework, in order to serve the needs of all end-users.
EURACTIV organised this debate to discuss how Europe’s power system can best be managed to create savings on electricity generation, decrease CO2 emissions, and benefit EU consumers.
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