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Europe’s Challenge: A Smart Power Market at the Centre of a Smart Grid
This report by the Climate Policy Initiative argues that Europe's current power market designs are insufficient to support the transition to a low-carbon energy system and the goals of a smart grid. It advocates for a transition from zonal pricing and market coupling toward an integrated power market based on locational marginal pricing (nodal pricing), citing the US experience as a successful model for managing transmission constraints and integrating intermittent renewable energy.
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Document type: Report
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