June 5, 2025

1. Summary Europe’s renewable energy subsidies have driven an impressive buildout of solar and wind capacity over the past decade. However, many of these support mechanisms were designed under market conditions that no longer reflect today’s realities. By shielding renewable generators from market price signals—especially during periods of negative pricing—subsidy schemes have inadvertently introduced inefficiencies […]

1. Summary The traditional Merit Order model has long served as a valuable tool for visualizing electricity market dynamics at a given point in time. However, as storage systems scale and demand becomes more responsive to price signals, the model must evolve to remain insightful. Incorporating energy storage and demand-side flexibility into the Merit Order