Benchmarking Electricity Liberalisation in Europe

In this paper, we discuss the choice and use of benchmarks in each of five areas relevant to an assessment of the progress of EU electricity sector liberalisation. These areas are market design, market power, EU enlargement, regulation, and sustainability. Our aim is to discuss the most important benchmarks for each area, and to do so in the context of that area. Where a benchmark can be used as a signal that things are going well (or badly) we will discuss the values associated with a good (or bad) signal. This paper forms part of the final report of the EU funded Sustainable Energy Specific Support Assessment project (SESSA, see www.sessa.eu.com)

Europe’s electricity regime: restoration or thorough transition

Concerns about climate change, diminishing social acceptance of traditional fuels, and technological innovations have led several countries to pursue energy transition strategies, typically by massive diffusion of renewable electricity supplies. The German ‘Energiewende’ has been successful so far in terms of deploying renewable power, mainly by applying particular feed-in tariffs, and by bundling public, academic, industrial and political support. So far though, only few EU member states proceed with a similar transition. In March 2014 CEOs of Europe’s major energy companies publicly opposed a fast and thorough transformation of electricity supplies to become fully renewable. In April 2014 the European Commission published new state aid guidelines, generally mandating renewable energy support mechanisms (premiums, tenders) of lesser performance than regularly adjusted, specific feed-in tariffs. The new guidelines are likely to be pernicious for the fast deployment of renewable electricity supplies.In light of these challenges, this position paper highlights two implications of power sector transitions. First, the engineering-economics theory of power generation systems needs fundamental revision, mainly since a growing share of power sources no longer function on command. Second, and based on the experience in Germany, the paper sketches out a strategy for a thorough transition of the power sector, which, in the end, also entails normative judgements. Deep changes in energy systems and associated ways of living require societal consensus building based on ethical considerations

La svolta energetica richiede scelte e azioni ora

L'articolo analizza le condizioni economiche per la attuazione della svolta energetica, mostrando che è caduta la contrapposizione tra economi e ambiente ed oggi le scelte portano ad una logica accelerazione del processo di decarbonizzazione