In a position paper twelve European industry and renewable associations promote a stronger internationalization of the short-term trading.
In their position paper, the European wind and solar associations, EWEA and Solar Power Europe, amongst others, criticize the current power market design, as it is not able to adjust to technological changes in the power generation sector. Flexibilities such as storage and Demand Side Response, which are necessary for the integration of fluctuating renewable energies, are discouraged. Furthermore, the prevailing power market design is based on a centralized model of energy generation and consumption and fails to provide for a decentralized power system along with the cross-border and intraday trading of electricity.
A reform of the current market design should however allow for the formation of guiding price peaks without suppressing those. Capacity mechanisms are therefore only to be applied in exceptional cases.
According to the associations „the main challenge for security of electricity supply is not the availability of capacity as such, but the availability of flexibility that is needed to support the system and provide for a constant balance between supply and demand”. They demand the implementation of a level playing field for flexibility providers to foster a European market for both trading electricity and grid support services.
Only a flexible and dynamic energy system that satisfies the above points renders a cost-efficient and sustainable transformation towards a decarbonized energy system possible.
