Market design

The process of designing market rules for the trading of gas and electricity is complicated by the unusual physical characteristics of the two commodities, notably the need for a single system operator to balance supply and demand over the appropriate time frames - maintaining sufficient technical coordination while enabling commercial competition. Rules for the energy market must be technically and commercially integrated with arrangements for obtaining access to the transportation networks.

The detail of market rules can have important implications for overall economic efficiency and for the commercial performance of individual market participants. Pöyry Energy has advised a range of clients on the development of market rules in competitive electricity and gas markets.