Effects of regulating the European Internal Market on the integration of variable renewable energy

摘要

The new proposal for regulating the European Internal Market for Electricity (EIME)can motivate the harmonization of the various National markets. The process of harmonizingthe day-ahead markets (DAMs) is at an advanced stage, with an efficiencyin the use of interconnectors of 86%. However, the harmonization of both intraday(IDMs) and balancing markets (BMs) is still in its infancy, with an efficiency in theuse of interconnectors of 50 and 19%, respectively. The new proposal brings new targetsto DAMs, and European countries should make efforts to comply with them.The same is true for IDMs and BMs, but involving more ambitious targets, requiringhigher efforts to be accomplished. Both the analysis of the various National markets(according to their compliance with the new proposal for regulating the EIME) andthe advantages of the new proposal for key market participants (particularly, consumers,variable renewable generation, and conventional generation) are presented.The analysis indicates that the proposal contributes to a potential increase of the generalwelfare of market participants. However, some aspects of the proposal can negativelyaffect the revenue obtained from the National markets, notably for variablerenewable generation and conventional generation.