EPRG 0605

Jean-Michel Glachant, Francois Leveque

Electricity Internal Market in the European Union: What to do next?

EPRG 0605 Non-Technical Summary | PDF

Abstract: Like in the US, the EU “internal electricity market” remains unfinished and its construction can stall, fracturing into “national blocks” separated by permanent “border effects”. This is exactly what this paper seeks to avoid in the expected life of the current European Commission (2005-2009). It identifies the critical factors: national and EU market designs, industry structure and competition policy, deeper regional cooperation between TSOs and Regulators. It suggests 8 priority actions and 12 secondary improvements to sustain the dynamics of the construction of an EU set of open regional markets with limited “border effects”, and explains the rationale for these recommendations.

Keywords: European Policy, European Electricity Market, Electricity Market

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