The energy market has never been more dynamic than it is today. Diverse political, economic, social and technological developments are having an enormous impact on the current energy market. Continuous and frequent changes in regulations also are increasing the pressure on the market to meet more complex requirements and tighter deadlines.
In addition, market changes are resulting in greater centralization, such as the introduction of data hubs, which are influencing the strategic choices and investments of market players. At the same time, decentralized sustainable energy production in conjunction with digital innovation is disrupting the energy supply chain.
Europe’s energy policies are focusing on harmonizing, greening and smartening. With respect to these developments, the European energy market is shifting in two ways. First, harmonization of the energy market is leading to the centralization of market processes, improving transparency and lowering entry barriers for new entrants. Second, renewable energy production and consumption are moving the entire market toward decentralization.
This paper aims to provide a view on how these developments will impact the energy market and the role of central market facilitation in the new world.
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