Powering tomorrow: grids at the core of Europe’s energy future – ember-energy.org

Report on Energy Market Transformation and its Alignment with Sustainable Development Goals

Advancing SDG 7 and SDG 13: Market Innovation for Clean Energy Integration

Recent discussions on the Slovak and regional energy sector highlight a significant alignment between technical progress and policy ambition, particularly concerning the United Nations Sustainable Development Goals. Innovations in the power market are crucial for achieving Affordable and Clean Energy (SDG 7) and taking Climate Action (SDG 13).

• The introduction of quarter-hourly day-ahead trading in Slovakia and the Czech Republic represents a key market evolution.
• This development improves price accuracy and necessitates faster data exchange and advanced forecasting tools.
• By enabling more precise management of supply and demand, this innovation facilitates the large-scale integration of variable renewable energy sources, a cornerstone of SDG 7 and SDG 13.

Fostering SDG 9 and SDG 11: Digitalization and Infrastructure for Sustainable Communities

The modernization of energy infrastructure through digitalization is fundamental to building resilient infrastructure (SDG 9) and creating sustainable cities and communities (SDG 11).

1. The Energy Data Centre (EDC): The EDC was identified as a cornerstone of digitalization. Its role is pivotal in building the innovative and resilient infrastructure required by SDG 9.
2. Market Transparency and Flexibility: The EDC enhances market transparency and supports the aggregation of flexibility from distributed energy sources. This capability is essential for managing the complex energy systems of modern, sustainable cities (SDG 11).
3. European Cooperation: Regional cooperation in these technological advancements underscores a commitment to SDG 17 (Partnerships for the Goals), ensuring a harmonized approach to sustainable energy infrastructure.

Promoting SDG 12: Evolving Market Dynamics for Responsible Consumption

The transformation of regional electricity markets is actively shaping more sustainable consumption patterns, directly contributing to Responsible Consumption and Production (SDG 12).

• Energy suppliers are adapting to dynamic pricing structures, which signal the real-time cost of energy and encourage efficiency.
• Evolving customer behavior, influenced by these new market signals, demonstrates a shift towards more responsible energy use.
• The mainstreaming of flexibility as a standard market feature indicates a systemic move towards optimizing energy resources, which is central to the principles of SDG 12.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights issues and developments in the energy sector, particularly concerning electricity markets, infrastructure, and technology. These topics are directly connected to the following Sustainable Development Goals (SDGs):

• SDG 7: Affordable and Clean Energy: The core discussion revolves around modernizing the electricity market, improving grid flexibility, and incorporating innovation. These efforts are fundamental to ensuring access to affordable, reliable, sustainable, and modern energy for all. The article’s focus on “grid flexibility” and “distributed sources” points towards integrating cleaner energy forms.
• SDG 9: Industry, Innovation and Infrastructure: The article emphasizes building resilient and innovative energy infrastructure. The mention of “electricity market reform,” the “Energy Data Centre (EDC) as a cornerstone of digitalisation,” and the development of “new forecasting tools” all contribute to upgrading industrial infrastructure and fostering innovation as outlined in this goal.
• SDG 17: Partnerships for the Goals: The article explicitly mentions “European cooperation” and discusses developments in a regional context involving Slovakia and the Czech Republic. This highlights the importance of partnerships and collaboration to achieve sustainable development in the energy sector.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific SDG targets can be identified:

1. SDG 7: Affordable and Clean Energy

   • Target 7.a: “By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.” The article’s reference to “European cooperation” and the discussion of “technical progress,” “innovation,” and “digitalisation” in the energy sector directly align with this target of promoting investment and cooperation in clean energy technology and infrastructure.
   • Target 7.b: “By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services…” The development of the “Energy Data Centre (EDC),” the implementation of “quarter-hourly day-ahead trading,” and the focus on “grid flexibility” are all examples of expanding and upgrading infrastructure and technology to supply modern energy services, as called for in this target.

2. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.1: “Develop quality, reliable, sustainable and resilient infrastructure…” The article’s discussion on “electricity market reform” and enhancing “grid flexibility” directly addresses the need to develop more reliable and resilient energy infrastructure. The EDC is presented as a “cornerstone” for this modern infrastructure.
   • Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies…” The adoption of “new forecasting tools,” “digitalisation,” and systems that support “aggregation of flexibility from distributed sources” are clear examples of upgrading infrastructure with cleaner and more efficient technologies.

3. SDG 17: Partnerships for the Goals

   • Target 17.6: “Enhance… regional and international cooperation on and access to science, technology and innovation…” The article’s context of a two-day discussion involving Slovakia, the Czech Republic, and the broader theme of “European cooperation” exemplifies regional cooperation to share knowledge and advance technology and innovation in the energy sector.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not mention official SDG indicators, but it implies several practical metrics and developments that can be used to measure progress towards the identified targets:

• Implementation of Advanced Trading Mechanisms: The article mentions the “initial experiences with quarter-hourly day-ahead trading in Slovakia and the Czech Republic.” The adoption rate and successful operation of such mechanisms can serve as an indicator of market innovation and efficiency (relevant to Targets 7.b and 9.4).
• Development and Functionality of Digital Infrastructure: The establishment and enhancement of the “Energy Data Centre (EDC)” is a key development. Its functionalities, such as improving “market transparency” and supporting “aggregation of flexibility,” can be measured as indicators of progress in digitalizing the energy infrastructure (relevant to Targets 7.b and 9.1).
• Market Adaptation to Dynamic Pricing: The article notes that energy suppliers are “adapting to more dynamic pricing structures.” The prevalence of these structures and the level of supplier and consumer adaptation can be an indicator of a more flexible and responsive energy market (relevant to Targets 7.b and 9.4).
• Level of Grid Flexibility: The statement that “flexibility is becoming a standard feature of regional electricity markets” implies that the capacity for “aggregation of flexibility from distributed sources” can be measured. This would be a direct indicator of a more resilient and modern grid capable of integrating variable renewable energy sources (relevant to Targets 7.b and 9.1).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: ember-energy.org