Long-Term Market Design

ENTSO-E firmly believes that the target model enshrined by the CACM, EB and FCA network codes should be implemented as soon as possible across Europe; underpinned by timely and adequate transmission investments. This will provide crucial support not only to the completion of the IEM, but also to the other EU energy policy objectives of security of supply, decarbonisation and affordable prices.
 
However, growing concerns exist among European and national policymakers and stakeholders about the ability of current market designs to cope with very high percentage of variable RES generation and the transition management towards power systems beyond 2020.

ENTSO-E and its members believe that potential shortages in generation adequacy, flexibility and system services are increasing threats to grid security. For this reason, it is fundamental to design appropriate market mechanisms and investment incentives to efficiently address such issues, which may or may not include capacity mechanisms.

Through the recent creation of the Ad-hoc Group Long-Term Market Design (AhG LTMD), ENTSO-E will firstly to analyse the strengths, weaknesses and challenges of the current market design. Secondly, the AhG LTMD will explore alternative options and eventually propose solutions for market and system design able to meet long-term policy objectives, while reflecting the reality of the technical challenges.

For more information on long-term market design, please contact Marco Foresti