President of PSE: Europe needs a multi-commodity market and awareness of network constraints

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During the Areopagus for Renewable Energy 2021 conference, organized by Stowarzyszenie na Rzecz Efektywności im. prof. Krzysztof Żmijewski, president of Polskie Sieci Elektroenergetyczne (PSE), Eryk Kłossowski, assessed that one should stop believing that “connected power systems have the nature of a copper plate and will send electricity from anywhere to anywhere in all circumstances”. According to him, it will not be possible to remove all restrictions on the energy market or to create perfect competition.

As emphasized by the president of PSE, there are network limitations that will never be removed. This is due to unprofitability, and in addition, trade does not take place in perfect competition. According to Kłossowski, “each market participant has a different expected rate of return, a different type of access to information and a different strategy. Actually, all the assumptions of neoclassical economics will crumble when confronted with the market reality. They are total fiction and pyramidal nonsense”.

According to the president of PSE, Europa needs a multi-commodity market and awareness of network constraints, and a market in which prices are a signal for localization should also be created.

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