ENTSO-E welcomes the publication of the legislative initiatives to reform the electricity market design. ENTSO-E supports the objectives of the proposals to optimise the current electricity market design for a decarbonised energy system and to improve affordability for consumers.

ENTSO-E supports:

  • the objective of avoiding a distortion of short-term markets, which ultimately ensures balancing and security of the system,
  • the European Commission’s recognition of the role of flexibility needs assessments,
  • the provisions to enhance demand response and consumer protection,
  • the goal to strengthen long-term investment signals for carbon neutral generation deployment.

“The priorities outlined by the EU Commission are generally aligned with those that we identified in our Vision to a Power System for a Carbon Neutral Europe(1) and detailed in our response to the EU consultation(2)” reacted ENTSO-E Secretary-General Sonya Twohig.

However, ENTSO-E considers that some key elements are currently missing from the proposals. In particular, ENTSO-E identifies a need to improve investment signals for adequacy in order to secure the availability of reliable and affordable electricity when needed.

ENTSO-E also has some concerns on the impact of specific provisions, which were included without a proper impact assessment, and could have detrimental effect on the functioning of the market (e.g. including in legislation detailed provisions on intraday gate closure time, compensation mechanisms for offshore renewables using congestion income, mandatory development of Regional Virtual Hubs for forward markets). These topics could be considered in a possible future more comprehensive market reform, if the net benefits of these measures can be proven by a thorough impact assessment.

Over the coming weeks, ENTSO-E will further analyse the elements of the proposals and their implications on the European Electricity Transmission System.

ENTSO-E looks forward to actively contribute to the debate on the Electricity Market Design reform to accelerate the transition to a decarbonised, reliable and affordable European power system.


(1) ENTSO-E Vision: A Power System for a Carbon Neutral Europe
(2) ENTSO-E’s Response to the European Commission Public Consultation on Electricity Market Design


ENTSO-E, the European Network of Transmission System Operators for Electricity, is the association for the cooperation of the European transmission system operators (TSOs). The 39 member TSOs, representing 35 countries, are responsible for the secure and coordinated operation of Europe’s electricity system, the largest interconnected electrical grid in the world. In addition to its core, historical role in technical cooperation, ENTSO-E is also the common voice of TSOs.

Press contact: Media@entsoe.eu