Market Design and Regulations

Increased shares of variable renewable energy, combined with the rise in distributed generation, are beginning to have profound impacts on electricity markets, the demand for system flexibility and the business models of traditional utilities and distribution companies. This requires a rethinking of the way power sector markets are designed and operated as well as a timely and efficient adaptation of traditional mechanisms.

IRENA’s study Adapting Market Design to High Shares of Variable Renewable Energy identifies lessons learned and best practices and provides recommendations on how to adapt market rules and policies to take into consideration the evolution of the power system and to efficiently support the growth of renewable energy. These adaptations concern different stakeholders, including policy makers, regulators, grid operators, utilities and consumers.


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