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Event Highlights


Electricity

Event Highlights

16.11.2018

Takeaways from the SmartNet Workshops

On 24-26 October 2018 in Florence, several stakeholders from TSOs/DSOs, Regulators, Utilities and Traders joined the SmartNet Workshops hosted by the Florence School of Regulation to discover […] read more

Energy Policy

Alberto Pototschnig

Event Highlights

13.11.2018

Coupling the Sectors

On Friday 12 October 2018, the Florence School of Regulation hosted the Policy Workshop: ‘Coupling the Sectors’, directed by Alberto Pototschnig (FSR Part-time Professor). The […] read more

Electricity

Event Highlights

12.11.2018

Ready for the future of energy economics? In Florence, YEEES!

On 8 and 9 November, FSR had the pleasure to host the 25th Young Energy Economists and Engineers Seminar (YEEES). Fifteen PhD students from all […] read more

Gas

gas pipelines

Event Highlights

12.11.2018

Towards “Net Zero” Methane Emissions in the Gas Sector – Challenges and Opportunities

On the 15th of October 2018, the Florence School of Regulation and Gas Infrastructure Europe (GIE) jointly organised the policy workshop “Towards “Net Zero” Methane […] read more

Energy Policy

PAC 2018

Event Highlights

8.11.2018

Debating FSR research outcomes – Policy Advisory Council

On Monday 5th and Tuesday 6th November, the Florence School of Regulation hosted the 2018 Autumn edition of its Policy Advisory Council (PAC). The Policy […] read more

Energy Union Law

5th Vienna Forum on European Energy Law

Event Highlights

19.10.2018

The 6th Vienna Forum on European Energy Law

The Vienna Forum on European Energy Law in a joint initiative between the FSR Energy Union Law Area and the Energy Community Secretariat which provides […] read more

Gas

Event Highlights

17.07.2018

How to capture the value of energy storage in EU low carbon energy system?

On the 6th of July 2018, the Florence School of Regulation and Gas Infrastructure Europe (GIE) jointly organised a policy workshop dedicated to ‘The Value […] read more

Transport

Event Highlights

4.07.2018

The 7th Conference on the Regulation of Infrastructures- Interviews with the Authors of the Best Papers are available

The 7th Conference on the Regulation of Infrastructures took place in Florence on June 21st and June 22nd, 2018. The 7th edition of the conference aimed […] read more

Universal Access to Energy

Open Africa power

Event Highlights

21.06.2018

FSR welcomes Open Africa Power initiative participants

FSR welcomed participants from the ‘Open Africa Power’ initiative at our home base in Florence this week. The African participants interacted with FSR researchers to understand the […] read more

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FSR Regulatory Policy Workshop Series 2016-2017

The Reform of the EU ETS: what implications for the Energy Markets of the future?

- Climate

On Friday 23 February 2018, the Florence School of Regulation hosted the FSR Policy Workshop: ‘The Reform of EU ETS and its Implications for the Energy Markets’.

The event, attended by academics, practitioners and representatives of European and national institutions, investigated the main motivations and challenges related to the reform of the EU Emission Trading Scheme (ETS) for the period beyond 2020.

The EU ETS was first introduced in 2005 to create a market for GHG emission allowances (EUAs) – setting a price for carbon emission reflecting their negative externalities. Its implementation was hindered by the economic crisis in 2008-09 and 2012-14, as well as by the overlapping and interference of other European policies in the field of renewable energies and energy efficiency. Consequentially, the demand for EUAs has been lower than expected: given the fixed ‘supply’ of allowances, prices have inevitably gone down, reducing the effectiveness of the EU ETS in promoting any fuel and/or technology switching.

The scheme has been recently reformed, with the hope of strengthening its role as a driver towards a low-carbon economy. The reform is based on three main pillars: 1) supporting innovation by funding low-carbon technologies’ deployment and the modernisation of the energy sector; 2) tightening the cap (linear reduction factor of 2.2% from 2021 onwards) and setting a new emission reduction target (by 43% by 2030); 3) improving the rules to cope with the problem of carbon leakage. With the reform, a Market Stability Reserve (MSR) mechanism has also been introduced.

During the workshop, a consensus was reached on the fact that the EU needed a revision of the EU ETS and that the scheme’s effectiveness and consistency with the other policy tools had to be strengthened. Unfortunately, it was also recognised by some that the MSR, as defined in the reform, might not be enough and may arrive too late to change the situation emerged in the past decade.

The discussion strongly highlighted the necessity for enhanced coordination between environmental and energy policies, both at the European and national level. As the transition to a low-carbon economy is a joint effort, the implications of uncoordinated national measures should not be underestimated, as they might hamper the effectiveness and efficiency of the European approach. Furthermore, it was largely agreed that for the EU ETS to be effective, a higher price for carbon must be matched by long-term signals that reduce the uncertainty currently suffered by investors. Demand-Response, storage and other policy instruments can support the significant capital investments necessary to decarbonise the electricity mix, but they will hardly substitute the introduction of long-term contracts between the developers of renewable power plants and the buyers of electricity.

In short, to ensure the financeability of the capital-intensive generation investments required by the energy transition, a new market design for electricity must be adopted, where long-term tools for effective investment complement short-term tools for efficient operation.

180223 Workshop: The Reform of the EU ETS and its Implications for the Energy Markets