How can EU electricity market design support industry’s transformation?

What was of interest at the talk about EU electricity market design?

From the conversation between Cefic Executive Director for Climate Change & Energy Nicola Rega and Tom Howes, Policy Advisor, DG Energy at the European Commission I took away the following points:

With the goal of not having volatile and spiky prices and boosting renewables, the measures the new electricity market design package are focusing on consumer protection while the long term measures are applicable for industry as well. Effects should start being visible by early 2024 paving the way to pre-war electricity price levels.

Array of measures:

• Diversify fix-term and dynamic prices contracts

• Improve public subsidies with contracts per difference

• Improve long term market with access to power purchase agreements

• Improve the forward markets

• Boost flexibility to lower electricity prices with more storage

If contracts per difference were to be compatible with state aid, they could potentially be used to support industry.

The electrification agenda requires extra measures to step up demand from industrial and transport end users.

The electricity storage market needs support to grow firstly via market regulatory regime and, if needed in a later stage, via subsidies.