“How cross-border electricity trading can work better”

A study by Agora Energiewende* found that rules regulating electricity markets in the countries of Central Western Europe vary widely from each other, making it difficult for the nations to optimally use the flexibility of the electricity system. Efficiency losses due to incompatibility occur repeatedly during electricity trade between CWE countries, which include Austria, Belgium, France, Germany, Luxembourg, the Netherlands and Switzerland. The countries are working to develop better integration of their electricity markets with the primary aim of meeting the increasing demands for flexibility arising from the expansion of photovoltaics and wind power. “The alignment of the market regulations is a key prerequisite to enabling renewable energies to be successfully and cost-efficiently deployed in the European electricity system," said Agora director Patrick Graichen. "This is a necessary step if we are to increase the share of renewable energies in the European electricity mix to around 50 per cent by 2030.”

For background, read the CLEW dossier Germany's energy transition in the European context.

*Like the Clean Energy Wire, Agora Energiewende is a project funded by Stiftung Mercator and the European Climate Foundation.