Peder Andreasen's presentation slides at European Parliament's ITRE hearing on energy market design on 17th April 2016.

1. for Europe
An ENTSO-E Perspective on a New Energy
17 March 2016
Peder Andreasen
President
MARKET DESIGN
New Energy Market
Design
Public ITRE Hearing

2. TSOs support and implement the EU’s RES objectives
Significant flows all over Europe
+
Thousands of small generation units
CHALLENGES:
• system stability,
• resource variability,
• new connections,
• changed power flows,
• integrating demand-side
resources,
• empowering consumers
& managing data
• unlocking flexibility
27% RES by 2030
 about 45% RES in the power system

3. The flexibility needs of the power system are rising sharply
Source: energinet
Example of one week
in September in
Denmark:
56% wind power
End-consumers play
an increasingly
important role

4. Integrate renewables into the market
Phase out priority dispatch to allow RES to respond to
market
Expose ‘mature’ RES technologies to price signals
Ensure balancing responsibility for RES
Support should be market-based (auctions, tendering,
premiums)
Create a regional and European framework for RES support

5. Market design adjustments beyond renewables
Scarcity pricing
Empower consumers: let them choose their level of
flexibility (demand-side) and reap the benefits
Value system services
Closer TSO-DSO cooperation for distributed flexibility
Strengthen overall balancing responsibility & let risk-
hedging products develop

6. Recommandations on market design largely correspond to our
analysis
A common system analysis methodology already exists, but still
needs to be adopted by Member States
The responsibility for secure system operation needs to remain
with TSOs who rely on service providers for close cooperation
New legislation on distributed flexibility is needed
Implement effectively existing mandates for ACER and the
ENTSOs
Conclusions for the Langen draft report

7. THANKS FOR
YOUR ATTENTION
Peder Andreasen
President