Energy Market Design and Policy

Energy market design plays a key role in the transition to a climate-neutral energy system. It is crucial for medium- and long-term investment decisions in generation and storage technologies as well as infrastructure, among others, and determines the interaction between private-sector and state-regulated players. The focus of the research area “Energy Market Design and Policy” is to analyze the impact of different market design proposals from the scientific and political debate and to provide a scientific basis for advisory activities in the context of policy consulting.

Group members

Head of research area
Dr. Christian Sölch



Due to the current dynamic overall situation in the energy sector and its particular energy policy challenges, the BMWK has asked the Expert Commission on the Energy of the Future Monitoring Process, of which Prof. Grimm is a member, to prepare an analysis on the current situation on the electricity market and on further development possibilities of the electricity market design against the background of the energy transition.

The energy crisis is forcing Germany and other EU countries to reconsider and, if necessary, adjust energy policy decisions. New perspectives envisage a rapid expansion of renewable energies in the next few years. In the short term, there are considerations in Germany to reactivate coal-fired power plants from the reserve and to revise decisions to decommission coal-fired and nuclear power plants in the coming years. This brief study analyzes the price effects for the years 2024 and 2027 to shed light on both the short-term challenges and the medium-term prospects.












  • Expert Commission on the Energy of the Future Monitoring Process
    The Federal Government’s monitoring process “Energy of the Future” has been set up to track the energy transition on a continuous basis: how far have we come with the energy transition? What measures have already been implemented? What are the effects? Will we achieve our goals, or do we need to do some fine-tuning? The central task of the monitoring process is to analyse the reams of statistical information on energy that have been collected and then condense it and make it easy to understand. This involves an assessment of measures that have already been taken and work to pinpoint areas in which further efforts need to be made. In this way, each annual report provides an overview of the energy transition and the stage that it is at this point in time. We need to know where we have got to before we can decide what steps to take next. The Federal Ministry for Economic Affairs and Energy has been appointed lead ministry for the monitoring process for the energy transition. Also involved in the process is an independent commission of four renowned energy experts, who provide advice for the drafting process and a scientific opinion on the Monitoring Report.