Electricity Market Functioning: Current Distortions, and How to Model Their Removal

The Commission has been reviewing the regulatory framework of the EU's electricity markets, in its Market Design Initiative. This review led to the adoption of a set of new legislative measures as part of the Commission's "Clean Energy for All Europeans" package.

This study aimed to provide input into the Impact Assessment supporting the new legislative proposals for a new market design. It focussed on providing insight and data for the modelled scenarios and on providing advice on the modelling approach used in the Commission's in-house modelling tools, namely PRIMES and METIS.