Achievements and Challenges in European Energy Markets

The European electricity and gas markets have been deregulated more than two decades before. From rather diverse starting points, they have continuously evolved over the years to accommodate with new challenges and to improve integration. Since 2005, these markets have been complemented by the market for emission certificates established by the European Union (EU) emission trading system. Three partly competing paradigms have thereby shaped the markets and continue to drive their on-going transformation: effective competition, sub-sidiarity and sustainability.