The group of associations is challenging policy-makers to adopt a flexible and dynamic energy system, making the best use of innovative and distributed supply and demand options.

The associations are calling for three reforms: providing adequate price signals and further integration of short-markets across borders; ensuring a balanced approach to system adequacy that fully takes into account the contribution from the different energy sources; implementing a level playing field for all flexibility providers to foster the pan-European trading of electricity and grid support services.

“Europe must rewrite the rules governing electricity markets so they fit the reality of how power is generated, managed and consumed in today's energy system,” says Giles Dickson, chief executive of EWEA.

“Supply is getting more flexible and variable. Storage solutions are developing. And there's growing scope and interest in making demand more flexible.

“The energy system is now more complex to plan, control and balance. It needs enhanced flexibility, which requires significant changes in the relevant legislation. The Commission has a golden opportunity with the market design proposals they'll issue at the end of the year."

Oliver Schäfer, SolarPower Europe’s president, says, “An energy system with high shares of renewable energy will be more cost-efficient as it will rely on cheap power sources. But it also requires flexibility [for] providers to be properly remunerated.”