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Article | Energies | Science & society

Market Design and regulation

Published on 15 December 2023

Objectives: Monitor, analyze, and predict the market design transformations that will be required to navigate the energy transition, with a focus on the electricity, hydrogen, carbon, energy storage, and grid flexibility markets.

To achieve Net Zero, today's energy markets will have to invest on an unprecedented scale. Regulators will have to come up with new frameworks to ensure that the necessary financing is available. In Europe, for example, the electricity market is currently set up so that the operation of existing generation assets is what “pays." There are no real incentives for stakeholders to commit to the kinds of long-term capital expenditures that the energy transition requires.  Market design reforms will be critical. 

At I-Tésé, we develop forecasts and make recommendations based on our analysis of the latest research coming out of university laboratories and recommendations put forward by energy industry stakeholders. 

We are addressing several aspects : 


  • Electricity market operation, through monitoring short term prices and forecasts, regulated access to nuclear (through France's ARENH program), implementation of guarantees of origin (renewable energy today, hydrogen in the future).
  • The carbon market, through monitoring of the Carbon Border Adjustment Mechanism (CBAM) and price trends.
  • Financing for new-generation nuclear power plants (EPR2, SMR).
  • Financing storage and flexibility assets.
  • Financing for and organization of the deployment of large-scale hydrogen production assets and the related infrastructures.
  • The natural gas market.