Eurelectric concerned by progress on market integration

The completion of the IEM is imperative to Europe’s future in the energy system. It requires a well functioning energy market to be supported by a realistic CO2 price. This will ensure an efficient transition to a low-carbon economy and to ensure security of supply. As a result, EURELECTRIC has endeavored to ensure the 3rd Energy Package is implemented fully and integrated across wholesale markets.

Concerns have been expressed on the slow implementation to date of existing energy market legislation and market distortions. Both have caused considerable delays in the integration. EURELECTRIC has called for strong leadership from the European Commission to ensure the IEM implementation is put back on track.

EURELECTRIC has raised concerns on four areas:

1. Market integration should focus on ensuring there is a strong cross-border intraday and balanced markets. This will promote the continued growth of renewables.

2. The Government’s process for developing the network codes needs to be improved. The network code on electricity balance is not ambitious enough at present. Improvements will strengthen stakeholder involvement and see developments across Europe.

3. More interconnectors need to be introduced together with transmission lines, to be decided on a case by case basis after having received the cost-benefit analysis.

4. Energy only markets are key reference for the completion of the IEM. The growth of renewables is key to Europe’s de-carbonization agenda. As such the introduction of a capacity element is essential.