The Austrian broadsheet, Die Presse, today published an article by Christoph Riechmann and Walter Boltz of Frontier (Europe), discussing the reasons for high power prices and blackout risks in Europe.
The article highlights the lack of coordination of energy transition in the different member states of the European Union (EU), in particular noting that the transition does not fully account for security of supply. Further, most energy consumers face no price signals to which they could respond in the case of energy scarcity as prices are not linked to the spot markets. This is in contrast to the system in Norway, where such a link to the sport market exists and end customer prices can immediately react to a situation where electricity is scarce.
Christoph Riechmann pointed out that a better co-ordinated approach to the proliferation of renewable energy sources in the EU could lead to annual cost savings of up to €20 billion and improve security of supply.
Frontier (Europe) regularly advises public and private sector clients on issues relating to market design and security of supply.
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