Welcoming new entrants into European electricity markets
Schittekatte, Tim Reif, Valerie Meeus, Leonardo
Schittekatte, Tim
Reif, Valerie
Meeus, Leonardo
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2021
Journal
Energies
Book
Publication Volume
14
Publication Issue
13
Publication Begin page
4051
Publication End page
Publication Number of pages
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Abstract
In this review paper, we select four important waves of new entrants that knocked on the door of European electricity markets to illustrate how market rules need to be continuously adapted to allow new entrants to come in and push innovation forward. The new entrants that we selected are utilities venturing into neighbouring markets after establishing a strong position in their home market, utility-scale renewables project developers, asset-light software companies aggregating smaller consumers and producers, and different types of communities. We show that well-intentioned rules designed for certain types of market participants can (unintentionally) become obstacles for new entrants. We conclude that the evolution of market rules illustrates the importance of dynamic regulation. At the start of the liberalisation process the view was that we would deregulate or re-regulate the sector after which the role of regulators could be reduced. However, their role has only increased. New players tend to improve the sustainability of the electricity sector in environmental, social, or economic terms but might also present new risks that require intervention by regulators.
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Keywords
Electricity Markets, Integration, Demand Response, Innovation, Regulation