Scarcity pricing gains momentum
The preliminary results from European Commission's public consultation on Electricity Market Design have been published. The first item that is listed as having received the backing from a large majority of stakeholders is the need for "scarcity pricing, i.e. price formation better reflecting actual demand and supply". Also the recent policy paper from ENTSO-E identified as number one priority the "Price signals ... to reveal the value of flexibility for the electricity system".
More key issues like the network charges and the taxes and levies on energy use are also touched upon by both documents. The IndustRE project will publsh early in the new year its updated business models and its own recommendations for the necessary market design adaptations. Working together with all key stakeholders, IndustRE plays its role in maximising the contributions of industrial demand response to a safe, efficient and sustainable electricity system in a Europe that maintains competitive electricity prices for large and small consumers.