UEF // University of Eastern Finland

Helsinki 11 May 2016Kaisa Huhta

The development of the EU regulatory framework for electricity markets

UEF // University of Eastern Finland

2016 – the year of delivery

• Energy Union objectives– A fully integrated European energy market;– Energy security, solidarity and trust;

– Energy efficiency contributing to moderation of demand;– Decarbonising the economy, and– Research, Innovation and Competitiveness

UEF // University of Eastern Finland

New regulatory instruments expected in 2016• a new legal instrument on security of electricity supply

in 2016– Designed to enhance transparency, ensure a common

approach and better address cross-border solutions to security of electricity supply

• a new European electricity market design in the form of legislative proposals in 2016

– The new security of supply legislation is supposed to be fully integrated with the redesign of the electricity market

UEF // University of Eastern Finland

•Full implementation of the 3rd energy package•Strict implementation of competition rules to electricity markets•Improving interconnections•A new deal for consumers•Addressing capacity mechanisms through regulatory means•Diversifying the energy mix (energy sources, suppliers and routes)

Reoccurring themes

UEF // University of Eastern Finland

What to expect in practice? 1/2

• Common assesment criteria for evaluating levels of security of supply– an objective, EU-wide, fact-based security of supply

assessment addressing the situation in Member States.

– will take into account cross-border flows, variable renewable production, demand response and storage possibilities.

– will allow comparability between Member States’ assessments

UEF // University of Eastern Finland

What to expect in practice? 2/2

• A range of acceptable risk levels for supply interruptions

• Enhancing cross-border cooperation in scarcity situations

• A regional approach?

UEF // University of Eastern Finland

Thank you!

Kaisa Huhtakaisa.huhta@uef.fi