The article outlines the relevant theoretical background with respect to wholesale electricity markets, retail electricity markets, excess profits regulation, renewable energy support schemes and emergency interventions. It analyses the responses of the European Union, France, Norway, the Netherlands and Great Britain to the crisis. This analysis enables to make a number of recommendations about the future design of the electricity market in the light of theory and recent experience. Among the recommendations are the role for long-term contracts (PPAs), the integration and extension of the single market, the place for increased price granularity, appropriate energy taxation and the necessity of better monitoring of National Energy and Climate Plans to ensure adequate aggregate investment.
Reference:
Michael G. Pollitt, Nils-Henrik M. von der Fehr, Bert Willems, Catherine Banet, Chloé Le Coq, Chi Kong Chyong, Recommendations for a future-proof electricity market design in Europe in light of the 2021-23 energy crisis, Energy Policy, Volume 188, 2024:114051, ISSN 0301-4215, https://doi.org/10.1016/j.enpol.2024.114051.
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