European Commission reveals cross-border power price zone plans

Martin Degen

04-Mar-2015

The European Commission wants to build on existing electricity market designs in an upcoming proposal rather than “starting from scratch”, Florian Ermacora, head of wholesale markets at the Commission, said in Brussels on Wednesday.

However, despite the Commission’s pledge to avoid messing with existing structures, aspects of the green paper look set to represent a potentially radical shift from the current status quo for government energy departments and national regulators.

Speaking at an Eurelectric event, Ermacora said the widening of balancing and price zones so they no longer necessarily stop at national borders was an issue that will be considered.

EU member states should also consider creating regional transmission system operators as well as regional regulators, he added.

The Commission plans to publish a green paper – or a communication in Commission language – which will give some insight into its plans for a new power market design “as early as June this year”, Ermacora said.

This is then due to be followed up by a legislative proposal in 2016.

The new design is intended to address issues such as a lack of investment in new back-up power plants as more variable renewable power generation with zero marginal cost enters the market. Martin Degen

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