New Markets Design & Models for 100% Renewable Power Systems

Project: EU project

Project Details


The objective of this project is to develop and test an innovative electricity market design that can meet society’s needs in a near 100% renewable power system.

Such a long-term sustainable market design needs to provide efficient operational and investment incentives for an electricity system that is characterized by a high share of variable renewable energy sources, that is highly integrated with sectors such as home heating and cooling and transport, and needs to provide efficient incentives for the participation of all demand, from households to industrial consumers. It needs to provide security of supply by ensuring sufficient controllable electricity generation capacity without becoming too costly. And despite the variability of solar and wind energy the price risk must be limited: for investors, so the cost of capital does not become too high, and for consumers so they are not exposed to unmanageable swings in their energy expenses.

In this project, a market design will be developed that meets these objectives. It will be tested in a sophisticated simulation environment in which real-world characteristics such as actors’ limited foresight into the future and risk aversion are included. The performance of the market design – with respect to quantitative indicators such as security of supply, average costs to consumers and investment cost recovery – will be compared to a benchmark calculation of an optimal power system, which will also be developed in this project. We will involve representatives of all key stakeholder groups – consumers, large and small power generators, network operators and government in all phases of the process, in the market design as well as the development of the optimization and simulation models, in order to ensure the social acceptability of the research process and outcomes.
Effective start/end date1/02/2031/01/24

Collaborative partners

  • VTT Technical Research Centre of Finland
  • National Laboratory of Energy and Geology (lead)
  • Imperial College London
  • Netherlands Organisation for Applied Scientific Research (TNO)
  • Smartwatt - Energy Services S.A.
  • EnBW Energie Baden-Württemberg AG
  • Polytechnic Institute of Porto
  • Delft University of Technology (TU Delft)
  • German Aerospace Center (DLR)
  • bitYoga AS

UN Sustainable Development Goals

In 2015, UN member states agreed to 17 global Sustainable Development Goals (SDGs) to end poverty, protect the planet and ensure prosperity for all. This project contributes towards the following SDG(s):

  • SDG 7 - Affordable and Clean Energy
  • SDG 8 - Decent Work and Economic Growth

Funding category

  • EU-H2020


  • H2020-EU.3.3.4.