Experts and policy makers discuss the challenge of designing post-Paris Agreement electricity markets
24 June 2016
The third plenary meeting of the IEA Electricity Security Advisory Panel (ESAP) was held on 23 June 2016 in Paris, bringing together sectoral experts and policy makers from IEA member countries and IEA key partner countries to share experiences and discuss how to design electricity markets under ongoing decarbonisation. Discussion focused on the consequences on electricity markets of international and national-level climate and energy policies, including COP21 and the Paris Agreement.
To support the transition to low-carbon power systems, a new market design must incorporate carbon policies and renewable support into a consistent market framework. How can the design of electricity markets influence the ability to transition to a low-carbon electricity system while maintaining electricity security? What are some of the challenges to meet the scale and pace of this transformation, specifically while we are also seeing ageing capacity? Finally, what regulations are needed to extend the life of ageing low-carbon capacity, achieve climate change objectives and transition to a secure decarbonised electricity system?
Participants included Melanie Kenderdine, Director of the Office of Energy Policy and Systems Analysis at the US Department of Energy, who gave a keynote address, and Jun Luan, Vice President of State Grid Corporation of China (SGCC). Panel discussions were held on topics including electricity market reform, ageing low-carbon generation capacity, and the reality of the electricity industry in a post-Paris context.