Options for an electricity market design to finance a fully renewable electricity system – A joint project with Öko-Institut

An increasing share of renewable energies will lead to significant changes in the electricity markets. The very low marginal costs of electricity from renewable energy sources will result in wholesale prices close to zero. This raises the question of how renewables and flexibility options can be financed in a system based on 100 % renewables. What are the challenges for the market design, which options are available and what is relevant for the transformation. These questions are currently being increasingly discussed both from the scientific and political side (beyond short-term measures to limit rising electricity prices due to the Russian attack on Ukraine). This project aims to provide a structured overview and assessment of different options and feed them into the discussions.