Second, a volume mechanism: even the cost-optimal procurement strategy for 24/7 hourly matching might include some amount of excess clean energy. If total CFE generation of assets procured by 24/7 participants exceeds demand in a given hour, the “excess CFE”is not counted towards a CFE target; however, it is clean electricity that can potentially be stored (using batteries or LDES), or sold to the regional grid. As for the latter, excess CFE might displace emitting grid generators or reduce the need to import electricity from neighbouring areas.

First, a profile mechanism: participants doing 24/7 hourly matching procure clean energy resources that better match their demand patterns. As certain consumers align their demand with CFE supply on hourly basis, the need for dispatchable generation that can firm intermittent renewable supply is lower in the rest of the system. This mechanism can reduce the utilisation of fossil-based generators, such as OCGT power plants, which typically ramp up when wind and solar resources are scarce.

Long-term contracts, together with domestic gas production, typically accounted for 80-90% of the European Union’s natural gas consumption before the 2022 crisis. In the past two years, that share has dropped to around 50%. If no new contracts are signed and existing ones are not renewed, the share of spot gas and flexible LNG in total EU gas supply could increase to around two-thirds by 2030, which could increase exposure to short-term price volatility.

perhaps 100 million human researcher equivalents running day and night t