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Joint Research Centre

Energy market design and sector integration 

The JRC analyses evolving electricity market designs, ensuring they can integrate innovation, new technologies, and new delivery models while supporting a fair and efficient energy transition.

Overview

One focus of the JRC's energy research is the role of electricity markets as key instruments for system operation and investment, ensuring that costs and benefits are efficiently allocated while enabling innovation, flexibility and active consumer participation. 

By analysing evolving electricity market designs, the JRC can inform EU legislative and regulatory actions.

This is part of our work to support a reliable, affordable and secure energy system through integrated analysis of energy security, infrastructure development and market design. It assesses how electricity and gas systems evolve under the clean energy transition, addressing system resilience, market performance, societal impacts, and energy delivery challenges. 

Electricity market design

The JRC studies the design and evolution of electricity markets across wholesale and retail levels, including price formation, transparency, market integrity, competition, and consumer participation. 

It also analyses and models energy prices under REMIT (the Regulation on Energy Market Integrity and Transparency) to strengthen market oversight, ensure fair and transparent functioning, and support well-functioning and efficient electricity markets. 

Power system flexibility and demand response

The JRC assesses the role of demand-side flexibility in enabling cost-efficient system operation and supporting large-scale integration of renewable energy. 

Transcontinental grids, Global Gateway and projects of common interest

The JRC evaluates the development and interconnection of energy networks beyond Europe, for example, projects under Global Gateway, the EU strategy to invest in sustainable and trusted connections that work for people and the planet. 

We also support the assessment of strategic infrastructure projects, such as Projects of Common Interest (PCI)  through ranking methodologies and multi-criteria frameworks. 

Regulatory experimentation

The JRC investigates regulatory experimentation and sandbox approaches as tools to enable innovation and facilitate the energy transition. 

Energy system modelling, storage and distribution operators

The JRC applies a multi-model approach to analyse electricity system and market developments across the EU and beyond, including the integration of battery storage, accounting for efficiency and degradation, and assessing impacts on system operation and markets.  

It also examines the evolving role of distribution system operators, focusing on network operation, system security, digitalisation, and regulatory challenges to inform policy priorities. 

Support to policy

The JRC's scientific work extensively supports policy in the areas covered by the EU Electricity Regulation (2019), its subsequent reforms, and related policies. The following key policy areas of work are highlighted: