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--- topics:markets [2026/03/19 16:02] – ↷ Links adapted because of a move operation admin
+++ topics:markets [2026/04/02 12:09] (current) – admin
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-[[network_codes|]];
+<WRAP catbadge blue>Institutions & Markets
+</WRAP>
-[[merge_into_other_topics:role_model]]
 ====== Markets ======
-===== Defining Markets’ roles and functions <A,I>[Cerqueira, Belhomme et al. 2016] =====
+<WRAP meta>
-{{ :picture8.png?600 |}}
+lead-authors: [Name]
-[Source: Cerqueira, Belhomme et al. 2016: A methodology for the analysis of market designs at the horizon 2030. CIGRE 2016]
+contributors: [Names]
+reviewers: [Names]
+version: 0.4
+updated: 25 March 2026
+sensitivity: low
+status: draft
+ai-use: Claude Sonnet 4.6 (Anthropic) was used for editorial revision, reference verification, and formatting; to be reviewed
+</WRAP>
+<WRAP intro>
+This topic is part of the ISGAN Wiki and is currently being developed. You can contribute directly by clicking the edit button, or use the [[about:newtopic|Topic Builder]] for guided input. A confirmed wiki account is required. Register and allow up to three days for admin confirmation. Before contributing, read the [[about:guidelines|ISGAN Wiki Editorial Guidelines]].
+</WRAP>
+<WRAP insight>
+Electricity markets coordinate investment, dispatch, and system services across multiple timescales. Their design shapes which resources participate and who bears risk.
+</WRAP>
+===== Why this matters =====
+<WRAP callout>
+[To be drafted]
+</WRAP>
+===== Shared definitions =====
+Electricity markets are institutional arrangements through which the production, delivery, and ancillary services of the electricity system are coordinated via price signals and contractual obligations. Markets operate across multiple timescales — from long-term capacity investment decisions through to real-time balancing — and different market segments address different functions within the overall system.
+Cerqueira, Belhomme et al. (2016) describe the market and service layers of the electricity system across four temporal horizons: long-term investment and capacity mechanisms; medium-term management of uncertainties and risks with existing assets; short-term generation-consumption balance; and post-delivery settlement.((Cerqueira, P., Belhomme, R., et al. (2016). A methodology for the analysis of market designs at the horizon 2030. //CIGRE 2016 Session//, Paris.))
+<WRAP figure>
+{{picture8.png?700|The market and service layers timeline across investment, medium-term, short-term, and settlement horizons}}
+**Figure 1.** The market and service layers timeline.\\
+//Source: Cerqueira, Belhomme et al. (2016). Note: more recent versions of this framework may exist — see topic notes.((Cerqueira, P., Belhomme, R., et al. (2016). A methodology for the analysis of market designs at the horizon 2030. //CIGRE 2016 Session//, Paris.))//
+</WRAP>
+The same authors identify the main issues under discussion in market design, spanning generation mix, networks, system security, resilience, demand, ICT, storage, multi-energy systems, and the strategies and policies coordinating them.
+<WRAP figure>
+{{picture9.png?700|Main issues under discussion in electricity market design}}
+**Figure 2.** Examples of the main issues under discussion in electricity market design.\\
+//Source: Cerqueira, Belhomme et al. (2016).((Cerqueira, P., Belhomme, R., et al. (2016). A methodology for the analysis of market designs at the horizon 2030. //CIGRE 2016 Session//, Paris.))//
+</WRAP>
+===== Perspectives =====
-===== Main Issues of Market Design [Cerqueira, Belhomme et al. 2016] =====
+<WRAP perspectives>
-{{ :picture9.png?600 |}}
+==== Actors and stakeholders ====
-[Source: Cerqueira, Belhomme et al. 2016: A methodology for the analysis of market designs at the horizon 2030. CIGRE 2016]
-===== Revision of the EU's internal electricity market design =====
+==== Technologies and infrastructure ====
-**What are the components and the objectives of the proposed revision?**
+==== Institutional structures ====
-"The proposal foresees significant revisions to several pieces of EU legislation, notably the Electricity Regulation, the Electricity Directive and the REMIT Regulation. It includes a set of measures aimed to make electricity bills less dependent on fossil fuel prices by creating a buffer between short-term markets and the electricity bills paid by consumers. This will be done by way of incentivising longer term contracts, in particular boosting the market of power purchase agreements (PPAs), stabilizing the prices of electricity and curbing excessive revenues of energy producers by requiring the use of two-way contracts for difference (CfDs) for new investments in low carbon generation where public funding is needed, and improving the forward electricity markets."
+The EU revised its internal electricity market design through a 2023 proposal amending the Electricity Regulation, the Electricity Directive, and the REMIT Regulation. The revision aims to decouple electricity bills from short-term fossil fuel price volatility by incentivising longer-term contracts, expanding power purchase agreements, and requiring two-way contracts for difference for new publicly supported low-carbon generation investments. It also seeks to improve consumer contract choice and direct access to renewable energy.((European Commission. (2023, March 14). //Questions and answers: Electricity market design reform//. https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_1593))
-"The proposal further aims to **protect consumers from the price volatility of fossil fuels**, empower them with greater contract choice and more direct access to renewable energy. It also seeks to **incentivise investments in renewables** by facilitating access to longer-term contracts for developers (both State-supported Contracts for Difference, and private Power Purchase Agreements). This will be achieved by requiring Member States to ensure that instruments to reduce the financial risks associated to the buyer defaulting on its long-term payment obligations in the framework of PPAs are accessible to companies that face entry barriers to the PPA market and are not in financial difficulty. These can be guarantee schemes at market prices, as well as public support for non-fossil fuels PPAs."
+</WRAP>
-Source: Questions and answers. 14 March 2023 Strasbourg
+===== Distinctions and overlaps =====
-[[https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_1593|https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_1593]]
+===== Related topics =====
+[[topics:regulation|Regulation]] · [[topics:network_codes|Network codes]] · [[topics:flexibility_markets|Flexibility markets]] · [[topics:institutions|Institutions]] · [[topics:flexibility|Flexibility]] · [[topics:sector_coupling|Sector coupling]]
+===== Topic notes =====
+**Content notes from source material:**
+  * The two CIGRE figures may have more recent versions — the original note in the source flags this. The CIGRE 2016 paper is conference proceedings without an open-access URL; cite bibliographically only until a stable URL is confirmed.
+  * Merge flag for role model: no current wiki page — likely belongs here or in [[topics:actors_roles|Actors and roles]].
+  * Network codes cross-reference flagged in source — handled via related topics.
+  * The EU market design section contains substantive institutional content that belongs in the institutional structures perspective rather than in shared definitions — moved there as a starting point for development.
+  * Page owner: Klaus Kubeczko.
-~~DISCUSSION|Discussion Section - PAGE OWNER: Klaus Kubeczko~~