Single operator for EU power market coupling idea resurfaces
Date: September 9th 2024
Author: Siobhan Hall, Montel
Category: En.vision
Topic:
Electricity
, Energy policy
The idea of a single operator for the EU’s power market coupling algorithm has resurfaced in recommendations made by former Italian prime minister Mario Draghi on Monday in a report requested by the European Commission.
He recommended the EU develop “a true Energy Union” where decisions affecting the integrated EU energy markets are taken centrally rather than by a series of national bodies, as part of efforts to improve the bloc’s competitiveness.Having multiple market operators from different EU countries limited how quickly the coupling algorithm could be updated when needed and made it “very difficult in practice” for regulators to supervise “such a key function”, said Draghi.
The EC proposed creating a single EU entity for intraday and day-ahead market coupling in its draft electricity market design reforms last year intended to reduce price volatility and fossil fuel dependence.
But the idea was dropped from the final legislation approved earlier this year after strong opposition from European power exchanges, the current market operators.
They had argued that the current rotational model was more reliable, secure and cost-efficient than creating a pan-European unit.
This article is available also in Slovene.
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