Electricity market design
Underpinning the functioning of power systems is electricity market design. Recognising that each country circumstance is unique, the IEA works to identify appropriate electricity market models that support the development of secure, sustainable, and affordable power systems. Much of the IEA’s current work focuses on developing markets fit to support the transition to systems dominated by low-carbon sources of electricity.
Re-powering Markets: Market design and regulation during the transition to low-carbon power systems
Published: 18 February 2016
"Re-powering" refers to the process of replacing older power stations with ones that are more efficient and more powerful, but the term also lends itself to market design. To facilitate the transition to a low-carbon economy, electricity markets will need to be "re-powered": older market frameworks must be replaced with ones suitable for decarbonisation while ensuring a secure electricity supply. Market rules need to be modernised and better matched with lowcarbon policies while keeping the same overall market architecture.
Re-powering electricity markets can be done in several ways, depending on the existing market design or regulatory framework. Changes can be as limited as increasing the temporal or geographical resolution of existing markets or putting a price on scarcity, or as extensive as creating short-term markets and incorporating policies to increase renewables and reduce carbon emissions as part of a consistent market framework.
Re-Powering Markets brings together today’s best practices in new electricity market design and details the most effective and efficient ways for re-powering electricity markets to address the 21st century challenges of transitioning to low-carbon electricity.
Our work on Electricity
In May 2015, the Group of Seven (G7) Energy Ministers asked the IEA to help determine the best means of improving electricity security, including through increasing system flexibility
Electricity Market Design
Improving the design of electricity markets is critical to developing sustainable, secure, and affordable power systems
Electricity Technology Collaboration Programmes
IEA Technology Collaboration Programmes (TCPs) are unique research partnerships that underpin IEA efforts to support innovation for energy security, economic growth and environmental protection
Free monthly electricity production and consumption data for OECD countries as well as annual trends and paid data services
Learn more about the IEA's modeling and analysis on the future role of nuclear power in the energy system
Future Scenarios for Electricity
Access our latest long-term scenarios to gain insight into role of electricity in the future of the global energy system
Market design and regulation during the transition to low-carbon power systems
Electricity Security Across Borders
Case studies on cross-border electricity security in Europe
Projected Costs of Generating Electricity
An analysis of more than 180 plants in 22 countries projecting cost of generating electricity
- IEA holds high-level workshop on the future of electricity
24 April 2018
- The Year of Electricity at the IEA
16 April 2018
- Key Electricity Trends 2017
12 April 2018
Events & workshops
WorkshopEnergy Statistics Course March 2018Paris, France
WorkshopWorld Energy Investment Roundtable 2018UICP Espace Congrès, 16 rue Jean-Rey, Paris 15
WorkshopFourth Annual Expert Workshop: Challenges in Electricity DecarbonisationOECD, Paris