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Improving the Market for Flexibility in the Electricity Sector


  • de Jong, Jacques
  • Hassel, Arndt
  • Egenhofer, Christian
  • Jansen, Jaap
  • Xu, Zheng


Electricity will play a greater role in the transport and building sectors and all decarbonisation scenarios point to the increasing electrification of the energy system. To reach EU climate change targets, however, electricity will need to come increasingly from low carbon sources, especially (but not only) from variable renewable energy sources. Both trends - the electrification of sectors and the need to integrate electricity from variable renewables - mean that the electricity sector should become more flexible. This report reflects the discussions held in the CEPS Energy Climate House Task Force on Creating a Market Design for Flexibility in EU Electricity Markets, which met between April and September 2017. The Task Force formulated a number of recommendations in the areas of short-term and balancing markets; grid reinforcement and cross-zonal capacity allocation; aggregation; priority dispatch; DSOs (distribution system operators); and sectoral integration.

Suggested Citation

  • de Jong, Jacques & Hassel, Arndt & Egenhofer, Christian & Jansen, Jaap & Xu, Zheng, 2017. "Improving the Market for Flexibility in the Electricity Sector," CEPS Papers 13093, Centre for European Policy Studies.
  • Handle: RePEc:eps:cepswp:13093

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    References listed on IDEAS

    1. Lion Hirth & Inka Ziegenhagen, 2013. "Control Power and Variable Renewables A Glimpse at German Data," Working Papers 2013.46, Fondazione Eni Enrico Mattei.
    2. Karsten Neuhoff & Nolan Ritter & Aymen Salah-Abou-El-Enien & Philippe Vassilopoulos, 2016. "Intraday Markets for Power: Discretizing the Continuous Trading?," Discussion Papers of DIW Berlin 1544, DIW Berlin, German Institute for Economic Research.
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    4. Karsten Neuhoff & Carlos Batlle & Gert Brunekreeft & Christos Vasilakos Konstantinidis & Christian Nabe & Giorgia Oggioni & Pablo Rodilla & Sebastian Schwenen & Tomasz Siewierski & Goran Strbac, 2015. "Flexible Short-Term Power Trading: Gathering Experience in EU Countries," Discussion Papers of DIW Berlin 1494, DIW Berlin, German Institute for Economic Research.
    5. van der Veen, Reinier A.C. & Hakvoort, Rudi A., 2016. "The electricity balancing market: Exploring the design challenge," Utilities Policy, Elsevier, vol. 43(PB), pages 186-194.
    6. Frieder Borggrefe & Karsten Neuhoff, 2011. "Balancing and Intraday Market Design: Options for Wind Integration," Discussion Papers of DIW Berlin 1162, DIW Berlin, German Institute for Economic Research.
    7. Chaves-Ávila, J.P. & Hakvoort, R.A. & Ramos, A., 2014. "The impact of European balancing rules on wind power economics and on short-term bidding strategies," Energy Policy, Elsevier, vol. 68(C), pages 383-393.
    8. Karsten Neuhoff & Benjamin F. Hobbs & David Newbery, 2011. "Congestion Management in European Power Networks: Criteria to Assess the Available Options," Discussion Papers of DIW Berlin 1161, DIW Berlin, German Institute for Economic Research.
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    1. Oduro, Richard A. & Taylor, Peter G., 2023. "Future pathways for energy networks: A review of international experiences in high income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    2. Guido Pepermans, 2019. "European energy market liberalization: experiences and challenges," International Journal of Economic Policy Studies, Springer, vol. 13(1), pages 3-26, January.
    3. Jin, Xiaolong & Wu, Qiuwei & Jia, Hongjie, 2020. "Local flexibility markets: Literature review on concepts, models and clearing methods," Applied Energy, Elsevier, vol. 261(C).

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