Considerations for the regulatory design of electricity markets in transition

The fight against climate change requires the decarbonization of the energy sector, especially the electricity sector. A transition from fossil fuel based electricity generation to renewable energy is needed. Most countries struggle to phase out fossil fuels to achieve the required sector transformation.
This thesis analyzes the decarbonization progress in the EU member countries against the EU 2020 targets and explores shortcomings in the regulatory design of electricity markets to transform the sector to low-emission electricity generation.
A capacity auction with reliability options and an optimized auction design to promote renewable energy are developed to accelerate the transformation process while accounting for cost-efficiency and balanced burden-sharing. Hence, offering instruments that are politically feasible.