Negotiating risks in electricity market regimes: What lessons can be learned from the history of liberalisation reform for net zero transitions?

This paper develops a historical account of the introduction of electricity markets and liberalisation reforms in Britain and Europe. Drawing on the field of ‘policy-orientated history’ in energy studies, cases are analysed with a view to informing contemporary debates about fundamental reforms to electricity markets for renewables integration into power systems. A dynamic approach to market reform is suggested which analyses change across different dimensions of ‘electricity market regimes’. These are the negotiated rules and regulations through which the risks and costs associated with electricity systems are allocated. Electricity market regimes are shaped by political choices around economic risks and their allocation between producers, consumers and broader society. Based on the framework and historical analysis, the paper offers an analytical approach for the study of contemporary reforms of electricity markets in the context of net zero transitions.