Electricity Market Design - Global Regulatory Approaches to Facing the Challenges of the Energy Transition

Building on current debates and legislative initiatives, this chapter discusses electricity market design in a global and comparative law context. The chapter is structured around 3 questions: 1/ What should electricity market design achieve? 2/ How can regulators design electricity markets to meet these goals? 3/ How can we design markets to ease access of capital to markets needing foreign investment? Relatedly, "how can this design be made to work with investment screening programs to insulate strategic areas of the energy value chain from foreign investment?" The chapter ends with a fourth question: What can we learn from efforts so far? The goal is to provide a road map of how regulators may go about resolving future design problems, while preserving the fundamentals. Energy systems are slow to change, and so market rules. However, the ten months following the invasion of Ukraine by Russian forces demonstrated that governments and energy market actors, including consumers of all size, can react quickly and adapt behavior. The jurisdictions evaluated in this chapter (EU, United States and Brazil) all showcase the dual nature of electricity market design intended to meet domestic policy goals while also living in a global investment and energy environment.