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Frontiers in Energy >> 2018, Volume 12, Issue 4 doi: 10.1007/s11708-018-0575-x

Lessons from market reform for renewable integration in the European Union

Department of Electronic & Electrical Engineering, University of Bath, Bath, BA2 7AY, UK

Accepted: 2018-12-11 Available online: 2018-12-21

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The European Union (EU) has the most advanced, mature, and liberal energy markets that gave rise to the most dramatic drop in wholesale energy prices, whose fallen, however, has not been translated into a reduction in retail energy prices. Instead, energy prices in Europe rose above inflation year-in-year-out, and are considerably higher compared with major economic partners. This paper highlights the key limitations in the EU market designs and network access toward renewable integration, and the wide range of reforms that the EU is currently undertaken across the Member States to achieve two goals: to make the market fit for renewable, and to set a practical example of how a competitive economy can be built on a sustainable and affordable energy system. This paper concludes with key recommendations to developing nations, particularly in addressing heavy renewable curtailment.

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