Assessing Future Electricity Markets (AFEM)

The objective of the “Assessing Future Electricity Markets” (AFEM) project was to identify alternative electricity market designs and evaluate their potential to meet the challenges created by the targets set in the Energy Strategy 2050. AFEM assessed the feasibility of integrating renewable energy sources (RES) into the electricity supply system, since the current market model, in the long run of the Energy Strategy 2050, might no longer deliver the right investment incentives for the electricity market. To research future market designs, the AFEM project developed an integrated framework that links technical and economic models in order to:

• identify the renewable source potentials for solar and wind based on geographical location,
• evaluate the feasibility of network expansion and future grid infrastructure,
• research alternative market designs such as capacity and flexibility markets,
• determine the necessary investment requirements for generation (e.g. nuclear phase out and high RES deployment),
• study future reserve requirements and the impacts on short-term market operation.