Contracts in the reform of the EU electricity market

Stefan Ambec, Claude Crampes and Jean Tirole
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Stefan Ambec: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Claude Crampes: Unknown
Jean Tirole: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: This Policy Insight discusses the challenges facing the organisation of the electricity market through the lens of the EU's market reform. Two goals that the electricity market should consider are discussed: first, ensuring the optimal dispatching of existing electricity generation at the lowest cost, and second, fostering efficient and reliable investment in new generation to reach the EU's decarbonisation targets. The authors then investigate the challenges associated with developing long-term contracts for electricity generation.

Date: 2026-01-30
Note: View the original document on HAL open archive server: https://hal.science/hal-05486053v1
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