Market design and regulation of the energy market are crucial factors in shaping a successful transformation of the energy system. Effective regulation and fair competition are prerequisites for a secure, clean and affordable energy supply. Market design describes the structure and rules of the energy market. It includes all aspects that affect the operation of the market, such as how energy is generated and distributed, how it is billed, and how the price is set. The goal of energy market design is to ensure an effective and sustainable energy supply while promoting competition.
Energy market design and regulation are closely linked and influence each other. Effective regulation can help keep energy prices stable and reduce environmental impact. Effective energy market design can promote market competition and enhance security of supply.
In recent years, the requirements for energy market design and regulation have changed significantly. The transformation of the energy system requires a switch from traditional fossil fuels to renewable energies, which are often generated in a fluctuating and decentralized manner. New technologies such as storage systems and smart grids must be integrated. Effective regulation and a future-oriented energy market design are therefore of great importance to successfully implement the energy transition:
