Columbia International Affairs Online: Policy Briefs

CIAO DATE: 04/2012

Renewables and the EU Internal Electricity Market: The case for an arranged marriage

Jonas Teusch

March 2012

Centre for European Policy Studies

Abstract

This Policy Brief argues that pursuing the renewables objective could contribute to the completion of the internal electricity market, help to overcome opposition to transmission projects and decrease the market power of incumbents. Conversely, an integrated internal electricity market means less price volatility in specific regional markets, which allows for more efficient deployment and grid integration of renewables. Three sets of recommendations are proposed.