A future-proof design for Europe’s electricity market

 

The electricity market is already naturally split between fossil generators whose prices are largely determined by fuel costs and those running on renewables or nuclear fuel which have near-zero marginal cost. Splitting the two would be easy and immediately cut consumer bills in half, argues Mike Parr.

Mike Parr is director of PWR, a UK-based company providing market research and technical support in the field of renewables and energy efficiency. 

There has been considerable commentary on electricity market reform over the summer. As autumn approaches Germany, Belgium and Austria are now actively considering it.

Commentary from “energy experts” has for the most part been negative, often expressed in terms of either how difficult it will be or how long it will take. Taking one example: (...)