The design of the European electricity market Current proposals and ways ahead Policy Department for Economic, Scientific and Quality of Life Policies Directorate-General for Internal Policies Authors: Georg ZACHMANN, Lion HIRTH, Conall HEUSSAFF, Ingmar SCHLECHT, Jonathan MÜHLENPFORDT and Anselm EICKE PE 740.094 - September 2023 EN STUDY Requested by the ITRE committee Abstract The proposed reform of the electricity market design maintains crucial elements of the existing system to ensure continued efficient operation. The impact that changing the rules on longer-term contracts will have on consumer prices and investment will depend on the concrete language of proposed legislation as well as its ultimate implementation. Overall, neither the expected mode of impact of individual reform elements, let alone their interaction, is clearly spelled out by the legislators. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Industry, Research and Energy (ITRE). The design of the European electricity market Current proposals and ways ahead This document was requested by the European Parliament's committee on Industry, Research and Energy. AUTHORS Georg ZACHMANN, Bruegel Lion HIRTH, Neon Conall HEUSSAFF, Bruegel Ingmar SCHLECHT, Neon Jonathan MÜHLENPFORDT, Neon Anselm EICKE, Neon ADMINISTRATOR RESPONSIBLE Matteo CIUCCI EDITORIAL ASSISTANT Marleen LEMMENS LINGUISTIC VERSIONS Original: EN ABOUT THE EDITOR Policy departments provide in-house and external expertise to support European Parliament committees and other parliamentary bodies in shaping legislation and exercising democratic scrutiny over EU internal policies. To contact the Policy Department or to subscribe for email alert updates, please write to: Policy Department for Economic, Scientific and Quality of Life Policies European Parliament L-2929 - Luxembourg Email: Poldep-Economy-Science@ep.europa.eu Manuscript completed: September 2023 Date of publication: September 2023 © European Union, 2023 This document is available on the internet at: http://www.europarl.europa.eu/supporting-analyses DISCLAIMER AND COPYRIGHT The opinions expressed in this document are the sole responsibility of the authors and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy. For citation purposes, the publication should be referenced as: Zachmann, G., Hirth, L., Heussaff, C., Schlecht, I., Mühlenpfordt, J., Eicke, A. The design of the European electricity market, Publication for the committee on Industry, Research and Energy, Policy Department for Economic, Scientific and Quality of Life Policies, European Parliament, Luxembourg. © Cover image by Jeanne Menjoul...
