Interdependencies between smart grids and electricity markets: European status quo

During the last years, the large penetration of Renewable Energy Sources together with the development of new storage technologies and demand-responsive loads have been the major driving forces towards the transition from passive to active networks. This change has been accompanied by a significant restructuring of electricity markets, which have been steadily characterized by higher competition, participation of new entities and liberalization. In this direction, the adoption and implementation of the Energy Winter Package makes it imperative to couple and harmonize national markets, cover existing regulatory gaps, integrate smart grids and electricity markets and create a level playing field, in a non-discriminatory manner, for all participants. The goal of this paper is to provide a thorough overview of the European status quo regarding the interdependencies between smart grids and electricity markets both from the regulatory and from the implementation point of view.