Power markets and power sector planning in Europe


China has a number of challenges in the area of grid planning and operation in relation to integration of renewable energy. The rigidity of the structure and design of China’s electricity market runs counter to the kind of flexibility that a power system needs to incorporate higher shares of variable renewables. The European experiences with a liberalised market have provided cost-efficient opportunities for integration of renewable energy. A competitive market can be organised in different ways. In Europe the pathway and restructuring of the power sector from monopoly to competition, has been decided politically with the aim of sharpening the competitive edge of the industry and integrating the power markets to one single European market.  Development of the transmission grid is key to integrate otherwise isolated regional markets like that of China.

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