EU-SysFlex blog: Three policy recommendations from the impact analysis of market and regulatory options in the pan-European power system through advanced power system and market modelling


European 2030 Climate and Energy Policy Framework set an EU target of at least 32% for the share of renewable energy in the final energy consumption in the EU in 2030. This translates into electricity consumption originating from at least 50% renewable energy sources [1]-[4]. As RES have an uncertain output and a highly variable production pattern, new technical challenges arise in the pan-European electricity system. In order to maintain the security and stability of the system, new and innovative system services may be required, new service providers need to have a route to the market, and novel remuneration mechanisms and innovative market designs have to be explored.

EU-SysFlex’s Work Package 3 focused on the analysis of market design and regulatory options for innovative system services that can help address the challenges associated with the integration of very high levels of variable renewable generation. Within the work package, Task 3.4 analysed how different market designs play out across different operational timeframes and power system configurations, while at the same time considering both the short- and long-term impacts of these designs on the pan-European power system. A wide variety of models was used, ranging from UC/ED to game-theoretic and agent-based models. The research involved following partners: Imperial College London (UK), KU Leuven/EnergyVille (Belgium), National Centre for Nuclear Research (Poland), University College Dublin (Ireland), and VITO/EnergyVille (Belgium).

Analysis focused on four main areas of research: (1) market and regulatory design, (2) market behaviour, (3) geographical aspects, and (4) investment effects. Within each area, number of specific topics were addressed (see graph below). Interestingly, across these areas, the research pointed to several common conclusions and…read more


Written by: Gwen Willeghems (VITO/EnergyVille) and Arne van Stiphout (KU Leuven). VITO is Work Package 3 Leader and KU Leuven is Task 3.4 Leader.