– The report, Energy Transition Readiness Index (ETRI), ranks European countries on their progress in embracing renewable energy and fostering flexibility in their energy markets.
– Nordic countries such as Norway, Denmark, Finland, and Sweden lead in transition readiness due to their fair, transparent, and accessible flexibility markets, while countries like Greece, Switzerland, and Poland lag behind.
– Recommendations to address the challenge of balancing variable renewable generation with energy demands include identifying future flexibility needs, accelerating flexibility market reforms, addressing technology and process barriers, setting clear flexibility targets, making coordinated plans to meet targets, and devising policy interventions to incentivize flexibility.
The Energy Transition Readiness Index (ETRI) report, compiled by the Renewable Energy Association and sponsored by Eaton, assesses European countries’ progress in transitioning to renewable energy and fostering flexibility in their energy markets. The report ranks countries based on socio-political support, technology utilization, and market access for low carbon flexibility services. Business enthusiasm for the energy transition is growing, with Germany and the UK showing vast improvements in investor attractiveness.
Nordic countries like Norway, Denmark, Finland, and Sweden are leading in transition readiness due to their fair, transparent, and straightforward access to flexibility markets. In contrast, countries like Greece, Switzerland, and Poland have complex flexibility markets and weaker commitments to regulatory reform, hindering investment.
Recommendations include identifying future flexibility needs, accelerating market reforms, addressing barriers to technology and processes, setting clear flexibility targets, and devising policy interventions to incentivize flexibility. Countries that minimize their flexibility gaps will benefit both economically and in their transition efforts. Siobahn Meikle, accountable for the UK and Ireland businesses of Eaton, emphasizes the importance of creating fair and transparent markets to attract private investment in demand-side flexibility. Flexibility in the electric market refers to services that help manage energy flows and technologies that respond to market signals, such as battery energy storage systems and demand-side response programs.