1、Reforming Europes electricity marketPhoto by Vanessa Zalik Kearney,ChicagoThree targeted interventions that build on and strengthen the market design can help achieve the European Commissions(EC)goals:Address the investment climate for flexibility solutions.Local flexibility markets and extended cap

2、acity markets could provide the necessary market-based mechanisms.Boost power purchase agreements.Because the costs of renewable power production are largely fixed,the long-term prices that they should fetch are predictable.Power purchase agreements(PPAs)can transfer this predictable price to busine

3、ss and individual customers,provided the PPAs are easier to trade and restructure and are supplemented by long-term guarantees for the missing liquidity in the long term.Provide price stability for customers,and encourage them to participate.This dual goal can be met by ensuring sufficient choice of

4、 fixed and dynamic price components as well as onsite and off-site self-generation.Prices should reflect full costs and risk,including structuring costs and grid fees.Retailers need wholesale market liquidity across all horizons to source the required profiles,and the design should ensure they can l

5、imit their open position on the market.A good transition path and reasonable mitigations for losses should be part of the overall reform.Its time to design Europes electricity market for net zero and make it future-proof for decades to come.Now is the time to revamp the regions electricity market wi

6、th an eye on net zerofuture-proofing it for decades to come.Over the past 20 years,European citizens and businesses have enjoyed many benefits of the EU electricity market,which has delivered choice,competitive prices during the start of the energy transition,all while ensuring that electricity is r