Electricity Reform in Europe

Electricity Reform in Europe

Towards a Single Energy Market

Edited by Jean-Michel Glachant and François Lévêque

The realisation of a European internal market for energy is still a work in progress. Written by leading European scholars and discussed with major energy stakeholders, this book presents a thorough analysis of the motives and methods needed to achieve a single European energy market.

Foreword: US vs. EU electricity reforms achievement

Edited by Jean-Michel Glachant and François Lévêque

Subjects: economics and finance, competition policy, energy economics, industrial economics, public sector economics

Extract

Paul L. Joskow1 The final report of the Sustainable Energy Specific Support Assessment project (SESSA) provides a valuable overview of the status of policies aimed at creating a well-functioning electricity internal market in the European Union (EU) and provides a set of comprehensive recommendations for removing barriers to the market’s further development. The chapters in the report are written by the leading European scholars who have studied the structure, behavior and performance of liberalized electricity markets in many European countries as well as in other regions of the world. Both the analyses and the policy recommendations contained in this volume are well worth careful consideration by policy-makers in Europe, as well as by policy-makers in other countries that are seeking to adopt successful electricity sector liberalization programs. The SESSA report also comes at an important time in the development of liberalized electricity markets in Europe. Despite continued enthusiasm for comprehensive reforms to support the development of competitive electricity and natural gas markets from the EU authorities in Brussels, there are indications that the liberalization process has slowed down or even stalled in some European countries.2 The level of the commitment of policy-makers to making the structural, regulatory and market design changes necessary to realize Brussels’ vision seems to vary widely from country to country in the EU. The policies espoused by some EU countries to promote ‘national champions’ in electricity and natural gas seem to this outsider potentially to create some serious conflicts with important basic principles of...