Markets and Innovation Deliver The Energy Union


European markets for electricity and a better deal for customers: This was the promise of three liberalisation packages. The 20/20/20 targets added the green and climate agenda to market. While the 2020 objectives are starting to deliver, distortions due to subsidies have been upsetting the market agenda. The current imperative is to reconcile markets with the 2020 and 2030 sustainability agendas and to make the best use of innovation.

ENTSO-E outlines in this policy paper which changes are needed1: prices reflecting scarcity, linking retail and wholesale markets, a coordinated regional and European approach for renewable energy sources (RES), an overall change in the offers to and interaction with the active customer, and better research and development (R&D) management. These elements should form part of the forthcoming review of electricity legislation.

  1. See also ENTSO-E: Market Design Policy Paper, 15/09/2014; ENTSO-E: Demand Side Response Paper, 15/09/2014.


  1. Renewables and Innovation Complementary Game Changers for System and Market
  2. Markets, and Customer Empowerment Contribute to Security of Supply
  3. A Future-proof Market Design must be based on Efficient Price Signals
  4. Strengthening Price Signals to Value Energy, Flexibility and System Services
  5. Develop Risk-hedging Products
  6. Reduce the Impact of Taxes and Levies on Power Bills
  7. Tariff Structures to Evolve Away from Consumption-based Pattern Alone
  8. A Regional and European Framework for RES and Technology Development
  9. Linking of Wholesale and Retail Markets
  10. Replace Static Consumption Profiles with Time-of-use Settlement and Enlarge Customers’ Choice on Contracts and Services
  11. Remove Barriers to Demand-side Response Contracts and Services
  12. Develop Tso-dso Co-operation and Provide Europe-wide Rules on Distributed Flexibility
  13. Innovation to Underpin the Market-based Energy Transition Market-based Energy Transition
  14. Conclusion