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The Energy Transition and the Design of Electricity Markets.

The European energy price crisis that began with rising gas and electricity prices in 2021 turned into a security of fossil-fuel supply crisis following the Russian invasion of Ukraine. The combined price and security crises add urgency to the climate crisis that has to date been the primary motivator for the energy transition. The European Union (EU) and the United Kingdom (UK) are scrambling to respond to these new crises, while using them as a sound further reason to accelerate the energy transition.

Fossil fuels will continue to be part of the European energy mix for many years. However, the energy transition means that vastly expanded amounts of green electric power generation and consumption will replace current fossil-fuel production and consumption. Energy security will increasingly depend on the central role that electricity will play in the decarbonized energy system. To avoid or mitigate potential future problems concerning the reliability of electric power supply will require in-depth thinking on a redesign of current electricity markets.

 

20220913 OIES Current Energy Crises DOWNLOAD REPORT

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