Position paper - The new EU electricity market design should focus more on markets and less on regulation

The American Chamber of Commerce to the European Union (AmCham EU) supports building of a liberalised and integrated EU electricity market. This initiative will provide access to secure, competitively priced, and low-carbon energy while providing the European dimension to security of electricity supply.

To foster integration of renewables in the energy system, the immediate political focus should lie with supporting the investments needed in infrastructure projects to integrate renewables such as energy storage. To facilitate digitalisation of distribution systems, data collection and distribution must be given a greater role and data protection must be secured.

Competition and cost efficiency are paramount when renewables are promoted. This requires the phase out of subsidies and a shift towards research and innovation for low carbon technologies and storage.

If required, capacity mechanisms, as a last resort must be temporary, regional and at come at minimal cost. A liberalised electricity market allows for price spikes and allows markets to identify the most flexible solutions.