27/08/2026
⚡ How do electricity markets help balance power systems?
By matching electricity supply and demand, electricity markets keep power systems balanced while distributing costs and benefits among producers and consumers.
Well-designed markets also guide investments where they bring the greatest benefit.
📍 Better locational price signals could save the EU power system €26-61 billion annually by 2040.
🌱 Locational auctions help identify hotspots for renewable energy projects, maximising their integration into the grid while reducing costs for consumers.
🔌 Better market design also eases grid congestion, as volumes of costly grid rebalancing, known as redispatch, could increase almost sixfold by 2040.
Our research supports the design of electricity markets that are efficient, transparent and ready for Europe’s changing energy system.
Discover more at: https://joint-research-centre.ec.europa.eu/jrc-science-energy-resilience_en