Regional Electricity Market Design

image of Regional Electricity Market Design

Do current electricity market designs ensure a sufficient electricity supply at all times? This topic is currently the subject of intense debate across Europe, and several major countries such as Germany, the UK, France and Italy have decided that additional measures – so-called capacity remuneration mechanisms – are needed to supplement current market designs. This report describes and analyses the advantages and disadvantages of a range of measures proposed or currently implemented across Europe, and includes both best estimates of how the implementation of these measures will impact Nordic electricity prices as well as recommendations to the Nordic countries regarding a cost-efficient path to ensuring the Nordic security of supply.



Analysis of needed Demand response (or strategic reserves) in the Nordic region

In the Energy Only Market power producers bid at their short run marginal generation cost. Hydro power plants with reservoir capacity is an exception since these power plants have the possibility to adjust the timing of generation to ensure as high a price as possible for a limited amount of hydro energy.


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