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The European Energy Exchange (EEX) and the European Power Exchange EPEX SPOT SE have jointly responded to the EU consultation on electricity market design.
In their statement, both exchanges express their strong support for market-based, European-wide solutions when looking at complex questions such as the configuration of bidding zones or support schemes for renewables. The exchanges also stress the importance of making full use of the price signal based on the established, liquid markets to drive forward internal market integration and efficiently achieve the EU’s energy and climate policy targets. Furthermore, EEX and EPEX SPOT emphasise the need for better regulation instead of more regulation.
The core messages of the exchanges’ response to the consultation are:
- Scarcity prices are an important ingredient to the market design. When scarcity prices are used to value flexibility, they create significant opportunities for the market. A clear political commitment against regulatory interference in market price formation is needed.
- The development towards large, cross-border bidding zones supports the efficiency of the power system by integrating markets.
- Renewables support needs to be increasingly market-based through feed-in-premium or quota systems. Support levels should be determined through competitive mechanisms. A more coordinated approach of renewables support in Europe is required.
- As far as market coupling is concerned, new governance rules for power exchanges are foreseen in the EU Regulation on Capacity Allocation and Congestion Management. These rules are promising and should be evaluated first before considering new regulations.
The response was handed in on 7 October 2015 and can be found by following this link.
