Developing green markets: design challenges and pioneering experience in three European settings – The Netherlands, the United Kingdom and Sweden

Abstract

This report explores some of the drivers behind this development and describes and analyses experiences in the Dutch, UK and Swedish green electricity markets.

The report points out that the recursion to market based greening is demanding, as political authorities thereby engage extensively not only in market regulation, but also in market construction, even to the extent of taking responsibility for creating demand and balancing it with sufficient supply. Because of the design challenge and the goal complexity, green electricity market development therefore appears to involve considerable policy learning and regulation and market construction itself, thus, contains strong elements of innovation. The report, therefore, shows how policy innovation comes to interplay with the technological and commercial innovation of market actors, that it is supposed to bring about.