CEER Report on Long-Term Generation Investment Signals in a Market with High Shares of Renewables

This report shares some considerations on whether the market framework currently in place in Europe is fit for the steady development of renewable energy, and if it will carry the necessary long-term generation investment signals.
In particular this report will:
(1) Investigate the decision maker’s problem and consequences of risk aversion.
(2) Propose several options for the current market model to evolve in order to solve the challenges brought, amongst others, by high RES penetration and high carbon prices.