Welcoming New Entrants into European Electricity Markets
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 v...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-07-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/14/13/4051 |
| _version_ | 1797527985163599872 |
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| author | Tim Schittekatte Valerie Reif Leonardo Meeus |
| author_facet | Tim Schittekatte Valerie Reif Leonardo Meeus |
| author_sort | Tim Schittekatte |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-10T09:51:39Z |
| format | Article |
| id | doaj.art-498017fc2c84476a9cb1101d0594fe7f |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T09:51:39Z |
| publishDate | 2021-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-498017fc2c84476a9cb1101d0594fe7f2023-11-22T02:39:14ZengMDPI AGEnergies1996-10732021-07-011413405110.3390/en14134051Welcoming New Entrants into European Electricity MarketsTim Schittekatte0Valerie Reif1Leonardo Meeus2Florence School of Regulation, Robert Schuman Centre for Advanced Studies, European University Institute, Via Boccaccio 121, 50133 Florence, ItalyFlorence School of Regulation, Robert Schuman Centre for Advanced Studies, European University Institute, Via Boccaccio 121, 50133 Florence, ItalyFlorence School of Regulation, Robert Schuman Centre for Advanced Studies, European University Institute, Via Boccaccio 121, 50133 Florence, ItalyIn 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.https://www.mdpi.com/1996-1073/14/13/4051electricity marketsintegrationdemand responseinnovationregulation |
| spellingShingle | Tim Schittekatte Valerie Reif Leonardo Meeus Welcoming New Entrants into European Electricity Markets Energies electricity markets integration demand response innovation regulation |
| title | Welcoming New Entrants into European Electricity Markets |
| title_full | Welcoming New Entrants into European Electricity Markets |
| title_fullStr | Welcoming New Entrants into European Electricity Markets |
| title_full_unstemmed | Welcoming New Entrants into European Electricity Markets |
| title_short | Welcoming New Entrants into European Electricity Markets |
| title_sort | welcoming new entrants into european electricity markets |
| topic | electricity markets integration demand response innovation regulation |
| url | https://www.mdpi.com/1996-1073/14/13/4051 |
| work_keys_str_mv | AT timschittekatte welcomingnewentrantsintoeuropeanelectricitymarkets AT valeriereif welcomingnewentrantsintoeuropeanelectricitymarkets AT leonardomeeus welcomingnewentrantsintoeuropeanelectricitymarkets |