BERLIN – Europe, for months planning a major overhaul of its power markets as a historic energy crisis rattles the economy, may find the best fix would be to let things largely remain as they are, according to a new study.
The bloc is planning to present market reform ideas in the first quarter of 2023. Russia’s deep cuts in natural gas supply to Europe have laid open the continent’s vulnerabilities and caused prices to spike, in the process driving up power rates to record levels this year. Instead, policymakers should focus on improving cross-border energy flows, increasing flexibility and bring better hedging opportunities. At present, consumers do not fully profit from the low cost of renewables, and power prices are oriented toward short-term markets, the study said.