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The European Single Market in Electricity: An Economic Assessment

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Abstract

The European single market in electricity has been promoted vigorously by the European Commission since 1996. We discuss how national electricity markets and cross border electricity markets have been reshaped by the process. We examine the Commission’s own work on evaluating the benefits of the single market. We look at the wider evidence of impact on prices, security of supply, the environment and on innovation. We conclude that the institutional changes are extensive and there has been significant market harmonisation and integration. However, the measured benefits are difficult to identify, but likely to be small. This is partly because over the same period there has been a large rise in subsidised renewable generation driven by the decarbonisation agenda.

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  • Pollitt, M., 2018. "The European Single Market in Electricity: An Economic Assessment," Cambridge Working Papers in Economics 1832, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:1832
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    Cited by:

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    2. Adeoye, Omotola & Spataru, Catalina, 2020. "Quantifying the integration of renewable energy sources in West Africa's interconnected electricity network," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    3. Michael G. Pollitt & Lewis Dale, 2018. "Restructuring the Chinese Electricity Supply Sector – How industrial electricity prices are determined in a liberalized power market: lessons from Great Britain," Working Papers EPRG 1839, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    4. Montoya, L.G. & Guo, B. & Newbery, D. & Dodds, P.E. & Lipman, G. & Castagneto Gissey, G., 2020. "Measuring inefficiency in international electricity trading," Energy Policy, Elsevier, vol. 143(C).
    5. Armario Benitez, Julia I. & San Juan Mesonada, Carlos, 2020. "Land, water and energy: the crossing of governance," UC3M Working papers. Economics 31463, Universidad Carlos III de Madrid. Departamento de Economía.
    6. Michael Pollitt, 2019. "Competition in Markets for Ancillary Services? The implications of rising distributed generation," Working Papers EPRG1928, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    7. Julián Chaparro-Peláez & Emiliano Acquila-Natale & Ángel Hernández-García & Santiago Iglesias-Pradas, 2020. "The Digital Transformation of the Retail Electricity Market in Spain," Energies, MDPI, Open Access Journal, vol. 13(8), pages 1-18, April.
    8. Laura M. Cruz & David L. Alvarez & Ameena S. Al-Sumaiti & Sergio Rivera, 2020. "Load Curtailment Optimization Using the PSO Algorithm for Enhancing the Reliability of Distribution Networks," Energies, MDPI, Open Access Journal, vol. 13(12), pages 1-15, June.
    9. Yu Hu & David Soler Soneira & Mar'ia Jes'us S'anchez, 2020. "Barriers to grid-connected battery systems: Evidence from the Spanish electricity market," Papers 2007.00486, arXiv.org, revised Nov 2020.
    10. Finn Roar Aune & Rolf Golombek, 2020. "Are carbon prices redundant in the 2030 EU climate and energy policy package?," Discussion Papers 940, Statistics Norway, Research Department.
    11. Steven M. Smith, 2019. "The Relative Economic Merits of Alternative Water Rights," Working Papers 2019-08, Colorado School of Mines, Division of Economics and Business.
    12. Brittany Tarufelli & Ben Gilbert, 2019. "Leakage in Regional Climate Policy? Implications of Electricity Market Design," Working Papers 2019-07, Colorado School of Mines, Division of Economics and Business.

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    Keywords

    electricity single market; decarbonisation;

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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