Europe: Cross-sector group of industry associations call on EU to deliver flexible power markets

The group of associations is challenging policymakers to adopt a flexible and dynamic energy system, making the best use of innovative and distributed supply and demand options.

Signatories include renewables industry (wind and solar), the Smart Energy Demand Coalition (SEDC), the European paper and pulp association (CEPI), the EU storage association (EASE), engine manufacturers (EUGINE), gas industry (Gas Naturally) and standardisation experts.

Giles Dickson, CEO of the European Wind Energy Association, says, "Europe must rewrite the rules governing electricity markets so they fit the reality of how power is generated, managed and consumed in today's energy system. Supply is getting more flexible and variable. Storage solutions are developing. And there's growing scope and interest in making demand more flexible.

He added: "The energy system is now more complex to plan, control and balance. It needs enhanced flexibility, which requires significant changes in the relevant legislation. The Commission has a golden opportunity with the market design proposals they'll issue at the end of the year. They must seize it."

Oliver Schaefer, SolarPower Europe's President, "An energy system with high shares of renewable energy will be more cost-efficient as it will rely on cheap power sources. But it also requires flexibility providers to be properly remunerated."

Frauke Thies, Executive Director of the Smart Energy Demand Coalition SEDC, said: "A multitude of innovative flexibility solutions are available today to form the backbone of a resilient and sustainable energy system for Europe. The opening of the energy markets for the different solutions and actors, not only on the supply- but also on the demand-side, will be a key success factor for the Commission's upcoming market design package."

The Group of Associations call for three reforms:

1. Providing adequate price signals and further integration of short-markets across borders
2. Ensuring a balanced approach to system adequacy that fully takes into account the contribution from the different energy sources
3. Implementing a level playing field for all flexibility providers to foster the pan-European trading of electricity and grid support services.

Full list of signatories: European Wind Energy Association; Solar Power Europe; Gas Naturally; the European Association for Storage of Energy; Confederation of European Paper Industries; Smart Energy Demand Coalition; European Environmental Citizens' Organisation for Standardisation; European Solar Thermal Electricity Association; EUROBAT; the European Building Automation Controls Association and the European Engine Power Plants Association.

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