TradeRES · Project

Electricity Market Design Tools for a 100% Renewable Power Grid

energyTestedTRL 5

Imagine Europe's electricity grid runs almost entirely on wind and solar. The problem is: the sun doesn't always shine, the wind doesn't always blow, and the old rules for buying and selling electricity weren't built for that kind of unpredictability. TradeRES built simulation tools and a web-based decision tool that let policymakers and energy companies test new market rules before rolling them out — like a flight simulator, but for electricity markets. The goal is to keep the lights on, keep prices stable, and make sure investors still want to build renewable power plants.

By the numbers

~100%

Renewable energy penetration target the market design is built for

Consortium partners across the project

European countries represented in the consortium

Total project deliverables produced

Industry partners in the consortium

The business problem

What needed solving

As Europe pushes toward 100% renewable electricity, the current market rules — designed for predictable coal and gas plants — are breaking down. Utilities face wild price swings, investors can't predict returns on wind and solar projects, and grid operators struggle to guarantee the lights stay on. Without new market designs, the cost of capital rises and the energy transition stalls.

The solution

What was built

The project produced 27 deliverables, headlined by an online open-access market web decision tool (D7.6) that lets users explore and compare electricity market designs for high-renewable systems. They also built a sophisticated simulation environment modeling real-world market behavior (including limited foresight and risk aversion) and an optimal power system benchmark for comparison.

Audience

Who needs this

National energy regulators redesigning electricity market rules for renewable targetsPower utilities managing revenue risk in high-renewable marketsRenewable energy investment funds assessing policy and price riskTransmission system operators planning for variable generation security of supplyEnergy consultancies advising governments on market reform

Business applications

Who can put this to work

Energy Trading & Utilities

enterprise

Target: Power utilities and electricity trading companies transitioning to renewable portfolios

If you are a power utility managing a growing renewable portfolio and struggling with price volatility and investment uncertainty — this project developed a simulation environment and an open-access market web decision tool that lets you test how different market designs affect your revenue stability, supply security, and cost recovery before real-world implementation. The tool was tested across 6 European country contexts with 11 consortium partners.

Energy Policy & Regulation

enterprise

Target: National energy regulators and transmission system operators

If you are a transmission system operator or regulator tasked with redesigning electricity markets for near-100% renewable penetration — this project built quantitative models comparing new market designs against optimal power system benchmarks. The simulation includes real-world factors like limited foresight and risk aversion, giving you evidence-based data on security of supply and average consumer costs before changing the rules.

Renewable Energy Investment

any

Target: Renewable energy developers and infrastructure investment funds

If you are an investment fund or renewable energy developer worried about cost-of-capital risk in markets dominated by variable generation — this project specifically addressed how market design can limit price risk for investors. The market web decision tool helps you evaluate which market structures best protect investment returns across different renewable energy penetration scenarios.

Frequently asked

Quick answers

What would it cost to access or use these tools?

The market web decision tool (D7.6) was developed as an online open-access tool, meaning it is freely available. There is no licensing fee mentioned in the project data. Integration or customization costs would depend on your specific needs.

Can these tools handle real national-scale electricity markets?

The simulation environment was designed to model real-world characteristics including actors' limited foresight and risk aversion, comparing results against optimal power system benchmarks. The consortium spanned 6 countries (DE, FI, NL, NO, PT, UK), suggesting the models were tested at national and cross-border scale.

What is the IP situation — can we use this commercially?

The project was funded as a Research and Innovation Action (RIA), which typically means results are openly accessible. The market web decision tool is described as open-access. Specific licensing terms should be confirmed with the coordinator at Laboratorio Nacional de Energia e Geologia in Portugal.

How does this compare to existing energy market modeling tools?

TradeRES specifically targets near-100% renewable systems, which most existing market models were not designed for. The project benchmarks its market designs against an optimal power system calculation developed in-house, providing a built-in quality check that standard tools lack.

Is this ready to inform actual policy decisions today?

The project ran for nearly 5 years (2020–2024) and produced 27 deliverables including the open-access decision tool. The consortium included 4 industry partners alongside research organizations, and actively involved representatives from consumer groups, generators, and network operators in the design process.

Does it cover sector coupling with heating and transport?

Yes. The objective explicitly states the market design accounts for electricity systems highly integrated with home heating, cooling, and transport sectors. This cross-sector dimension is built into the simulation models.

Consortium

Who built it

The TradeRES consortium brings together 11 partners from 6 countries (Germany, Finland, Netherlands, Norway, Portugal, UK) — a strong cross-European footprint covering major renewable energy markets. With 4 industry partners (36% of the consortium) and 3 SMEs, the project has solid private-sector involvement for a research action. The mix of 3 universities and 4 research organizations provides academic rigor, while the industry partners ground the work in market reality. The coordinator, Portugal's national energy and geology lab (LNEG), is a well-established public research institution, lending institutional credibility. The geographic spread across Nordic, Western European, and Southern European energy markets means the tools were tested against diverse grid conditions and regulatory environments.

Laboratorio Nacional de Energia e Geologia I.P.Coordinator · PT
IMPERIAL COLLEGE OF SCIENCE TECHNOLOGY AND MEDICINEparticipant · UK
NEDERLANDSE ORGANISATIE VOOR TOEGEPAST NATUURWETENSCHAPPELIJK ONDERZOEK TNOparticipant · NL
TEKNOLOGIAN TUTKIMUSKESKUS VTT OYparticipant · FI
ENBW ENERGIE BADEN-WURTTEMBERG AGparticipant · DE
INSTITUTO SUPERIOR DE ENGENHARIA DO PORTOparticipant · PT
SMARTWATT - ENERGY SERVICES SAparticipant · PT
ENLITIA SAparticipant · PT
DEUTSCHES ZENTRUM FUR LUFT - UND RAUMFAHRT EVparticipant · DE
BITUNITOR ASparticipant · NO
TECHNISCHE UNIVERSITEIT DELFTparticipant · NL

How to reach the team

Coordinator is Laboratorio Nacional de Energia e Geologia I.P. in Portugal — SciTransfer can facilitate an introduction to discuss the market decision tool.

Order a report on this consortium See Laboratorio Nacional de Energia e Geologia I.P. profile →

Next steps

Talk to the team behind this work.

Want to test how new electricity market rules would affect your business? SciTransfer can connect you with the TradeRES team and help you evaluate the open-access decision tool for your specific market context.

Order a report on this topic More in Energy & Climate