Open letter to the Energy Union cluster of Commissioners about Energy Market Design
Summary
The document argues that the Energy Market Design Initiative is essential for the success of the Energy Union and the implementation of the Paris Agreement. It outlines how market design can reduce energy poverty, boost security, and avoid fossil fuel lock-in by facilitating clean technology deployment. The authors call for specific actions, including the phase-out of coal by 2030, the promotion of energy efficiency and demand response, and the regulation of distribution system operators to support a decentralised energy system.
Key insights
- The Energy Market Design Initiative is presented as a critical factor for the success of the Energy Union's climate policy and the implementation of the Paris Agreement, with the potential to prioritise energy efficiency and establish the EU as a world leader in renewables.
- The authors argue that proper market design can prevent the continued use of fossil fuels by phasing out capacity mechanisms and other forms of direct or indirect support for these energy sources.
- To achieve decarbonisation and address excess generation capacity, the document calls for a smart retirement programme for surplus resources, prioritising the dirtiest and least flexible sources to ensure no coal remains in the EU by 2030.
- The letter recommends several market reforms to ensure energy is affordable, sustainable, and secure, including: enhancing consumer access to information and smart appliances for demand response; regulating distribution system operators as neutral facilitators for decentralised systems; and improving supply-demand balancing through regional markets and interconnections.
Cite the original document
- APA
- ClientEarth (2016). Open letter to the Energy Union cluster of Commissioners about Energy Market Design. https://www.clientearth.org/media/yb4mwkxo/open-letter-to-the-energy-union-cluster-of-commissioners-about-energy-market-design-coll-en.pdf
- Chicago
- ClientEarth. Open letter to the Energy Union cluster of Commissioners about Energy Market Design. 2016. https://www.clientearth.org/media/yb4mwkxo/open-letter-to-the-energy-union-cluster-of-commissioners-about-energy-market-design-coll-en.pdf.
- Wikipedia
- {{cite press release |author=ClientEarth |title=Open letter to the Energy Union cluster of Commissioners about Energy Market Design |date=3 November 2016 |url=https://www.clientearth.org/media/yb4mwkxo/open-letter-to-the-energy-union-cluster-of-commissioners-about-energy-market-design-coll-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{clientearth2016open, author = {{ClientEarth}}, title = {{Open letter to the Energy Union cluster of Commissioners about Energy Market Design}}, publisher = {ClientEarth}, year = {2016}, month = nov, url = {https://www.clientearth.org/media/yb4mwkxo/open-letter-to-the-energy-union-cluster-of-commissioners-about-energy-market-design-coll-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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