Transforming the present energy market

The new market design must make it possible to globally decarbonise the economy and generate the adequate atmosphere for the investment in renewable energies and in power plants with a firm and flexible capacity for low emissions, needed to guarantee the security of supply.


  • The current energy market was designed 20 years ago to open markets to competitors, reduce costs and, therefore, improve the accessibility to consumers, in economic terms. The single market was a good idea, since it optimised distribution, incentivised the improvement of efficiency and created a framework of equal conditions for new operators.
  • Currently, the new challenge is the decarbonisation of the economy. The system will be completely different in 2050, with a high penetration of renewable energies and a very low use of thermal power plants, a trend that is starting to emerge. The key to this low-emission future is investment, but the design of the current market does not allow it to send long-term signs, which are required to attract investments.
  • The Iberdrola group supports the remodelling of the current market design, in which:
    • The current market can be improved with the quick implementation of the continuous integration process in the European market, eliminating regulatory distortion, such as price limits or exit barriers.
    • Introduction of revenue stabilisation mechanisms for renewable energies (long-term coverage being a priority over capital investment).
    • Introduction of capacity mechanisms to guarantee the necessary guaranteed supply levels (the energy market and capacity market can and must coexist).

 FIND OUT MORE: Energy market design [PDF]