Electricity markets are broken – can they be fixed?

This paper argues that electricity markets in Europe are broken. The increasing penetration of subsidised, zero marginal cost, intermittent generation has distorted prices to the extent that they can no longer give effective signals for investment or operation. The problem is increasingly being recognised but there is no consensus on the solution. The paper considers a number of options; it concludes that a serious debate needs to get under way now if we are to develop sustainable markets for a low carbon future.

By: Malcolm Keay

Latest Tweets from @OxfordEnergy

  • New publication: The Forthcoming LNG Supply Wave: A Case of ‘Crying Wolf?’ https://t.co/gHM6LGBaNY

    February 27th

  • An OIES study quoted in a new article on Southern Gas Corridor’s contribution to EU energy security https://t.co/FRmW3dIcMf

    February 25th

  • GCC continues to invest in new capacity despite low oil prices while Iraq suffering from cuts, an OIES presentation https://t.co/mnZ2otLglu

    February 24th

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.