Europe is in a fossil energy supply crisis that is primarily driven by drastically reduced fossil fuel supplies from Russia in context of Russia’s war against Ukraine. The acute shortage of fossil fuel supplies is driving up fossil fuel prices. The spiking price of fossil gas is also driving up wholesale market prices for electricity as gas power plants often determine the electricity price in today’s electricity market. The effect is a massive transfer of wealth from energy consumers to companies or countries producing fossil fuels and to producers of electricity.
Decision-makers are therefore seeking ways to avoid that spiking fossil fuel prices translate into spiking electricity bills of households and companies. Against this background, Commission president Ursula von der Leyen announced a reform of the electricity market that should “decouple the dominant influence of gas on the price of electricity” and ensure that “consumers reap the benefits of low-cost renewables”.
In this webinar Agora Energiewende together with the consultancy Guidehouse presented the main features of Europe’s current power market design explaining what the energy transition means for the power markets to eventually propose elements for making Europe’s power market design more resilient.
A Q&A session with the audience closed the event.
The presentations shown during the webinar can be found in the download section below.
The recording can be found above.