Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Welcoming new entrants into European electricity markets

Version 1 : Received: 2 May 2021 / Approved: 6 May 2021 / Online: 6 May 2021 (15:25:51 CEST)

How to cite: Schittekatte, T.; Reif, V.; Meeus, L. Welcoming new entrants into European electricity markets. Preprints 2021, 2021050109 (doi: 10.20944/preprints202105.0109.v1). Schittekatte, T.; Reif, V.; Meeus, L. Welcoming new entrants into European electricity markets. Preprints 2021, 2021050109 (doi: 10.20944/preprints202105.0109.v1).

Abstract

We select four important waves of new entrants that knocked on the door of European electricity markets to illustrate how market rules need to be continuously adapted to allow new entrants to come in and push innovation forward. The new entrants that we selected are utilities venturing into neighbouring markets after establishing a strong position in their home market, utility-scale renewables project developers, asset-light software companies aggregating the assets of smaller consumers and producers, and different types of communities. We show that well-intentioned rules designed for certain types of market participants can (unintentionally) become obstacles for new entrants. We conclude that the evolution of market rules illustrates the importance of dynamic regulation. At the start of the liberalisation process the view was that we would deregulate or re-regulate the sector after which the role of regulators could be reduced. But their role has only increased. New players might also present new risks that require intervention by regulators.

Subject Areas

Electricity Markets; Integration; Demand Response; Innovation; Regulation

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