PROGRAM

Market Design in the European Electricity Market – Fit for the Future?

The European electricity market is undergoing a dramatic structural transition. To meet climate goals, it is crucial that production based on fossil fuels is eventually replaced by renewable sources such as wind and solar power. Consequently, there is a need for massive investments in renewable production in the coming years. However, this shift will replace regular production with unregulated production that is typically available only when the wind blows or the sun shines. For several years, there has been a debate in Europe about whether these challenges should lead to a major structural market reform. Last year, the European Commission concluded that only minor changes should be made to its electricity market design in Europe. The question now is whether the current market design is fit for the future.

To discuss this issue, we have two experts on the electricity market, both of whom have taken part in the debate concerning structural market reform in the EU:

• Professor Natalia Fabra, Universidad Carlos III in Madrid and NHH/BECCLE in Bergen

• Professor Nils-Henrik M. von der Fehr, University of Oslo

They will present their views on whether the current market design is fit for the future.

In addition, we will have comments from two experts with detailed knowledge of the Norwegian electricity system:

• Director General Kjetil Lund at the Norwegian Water Resources and Energy Directorate (NVE)

• Professor Mette Bjørndal, Norwegian School of Economics

They have also followed the European debate closely and will comment on the market design of the European electricity market from a Norwegian perspective.

After presentations and comments, we will host a debate between them and open the floor for questions and comments from the audience.

FUNDED BY

This seminar is supported by the ERC Starting Grant DEEP led by Associate Professor Morten Sæthre, which explores the impact of environmental policies on sustainable choices and investments. Jointly organized with the Norwegian School of Economics and BECCLE (Bergen Center for Competition Law and Economics).
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Funded by the European Union (ERC, DEEP, 101076433). Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Research Council Executive Agency. Neither the European Union nor the granting authority can be held responsible for them.