What May Future Electricity Markets Look Like?

Should the organization, design and functioning of electricity markets be taken for granted? Definitely not. While decades of evolution of electricity markets in countries that committed early to restructure their electric power sector made us believe that we may have found the right and future-proof model, the substantially and rapidly evolving context of our power and energy systems is challenging this idea in many ways. Actually, that situation brings both challenges and opportunities. Challenges include accommodation of renewable energy generation, decentralization and support to investment, while opportunities are mainly that advances in technical and social sciences provide us with many more options in terms of future market design. We here take a holistic point of view, by trying to understand where we are coming from with electricity markets and where we may be going. Future electricity markets should be made fit for purpose by considering them as a way to organize and operate a socio-techno-economic system.

Automated summary

Should the organization, design, and functioning of electricity markets be taken for granted? Definitely not. The evolving context of power and energy systems is challenging the idea of a future-proof model, but it also brings opportunities for advances in technical and social sciences to shape future market design. A holistic point of view is needed to consider electricity markets as a way to organize and operate a socio-techno-economic system.