This CERRE paper analyses the interlinkages between European gas and electricity markets and examines how price shocks propagate across the two systems.
Kong Chyong argues that high-impact, low-probability events, including periods of LNG supply stress,...
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This CERRE paper analyses the interlinkages between European gas and electricity markets and examines how price shocks propagate across the two systems.
Kong Chyong argues that high-impact, low-probability events, including periods of LNG supply stress, can generate severe price volatility, particularly under compound gas-power conditions, and that growing global gas-market integration allows external shocks to transmit rapidly into Europe’s wholesale electricity prices.
The paper suggests that many 2021–23 crisis measures functioned mainly as ex-post coping mechanisms, whereas stronger resilience depends on ex-ante measures that reduce exposure and dampen amplification, including demand-side flexibility, diversification, storage governance, and procurement and long-term contract design.
To support policy-makers in strengthening energy system resilience, the paper proposes an Energy Price Resilience (EPR) metric. Building on the existing gas n-1 security standard and electrici
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