Authority Shifts in Volatile Energy Markets: Public-Private Authority in the EU Electricity Market During the 2021-2023 Energy Crisis
Author
Nielsen, Mai Vium
Term
4. semester
Education
Publication year
2026
Submitted on
2026-05-25
Abstract
This thesis investigates how the extreme electricity price volatility during the 2021–2023 energy crisis reshaped the balance of authority between public political actors and private market actors in the EU electricity market. Drawing on International Political Economy and Historical Institutionalism, it examines how authority is distributed and how crises act as critical junctures for market governance. Methodologically, it employs a qualitative case study of the EU electricity market based on document analysis of policy papers, institutional reports, and market developments. The analysis finds that heightened volatility strengthened the role of public—especially supranational—institutions through emergency interventions, redistribution measures, and market reforms aimed at stabilizing the market and protecting consumers. At the same time, private actors maintained and in some areas expanded their influence through risk management, trading coordination, and contractual innovations. The crisis therefore did not produce a simple shift toward either state or market, but reinforced a hybrid form of governance in which authority is shared and negotiated. The thesis addresses a gap in IR by showing that electricity markets are political arenas shaped by struggles over authority and revenue distribution, and it calls for stronger interdisciplinary engagement between IR and the technical and economic disciplines. Ongoing energy developments in 2026 are not reflected in the data but underscore the continued relevance of the topic.
Dette speciale undersøger, hvordan den ekstreme elprisvolatilitet under energikrisen 2021–2023 ændrede balancen i authority mellem offentlige politiske aktører og private markedsaktører i EU’s elmarked. Med udgangspunkt i International Political Economy og Historisk Institutionalisme analyserer studiet, hvordan autoritet fordeles, og hvordan kriser kan fungere som kritiske vendepunkter for markedsstyring. Metodisk anvendes et kvalitativt casestudie af EU’s elmarked baseret på dokumentanalyse af politikpapirer, institutionsrapporter og markedsudviklinger. Analysen viser, at øget volatilitet styrkede offentlige – særligt overnationale – institutioners rolle gennem nødindgreb, omfordelingsinitiativer og markedsreformer, der skulle stabilisere markedet og beskytte forbrugerne. Samtidig bevarede og på nogle områder udvidede private aktører deres indflydelse via risikostyring, koordination af handel og kontraktuelle innovationer. Krisen medførte derfor ikke et entydigt skifte mod enten stat eller marked, men forstærkede en hybrid styringsform, hvor autoritet deles og forhandles. Specialet adresserer et hul i IR ved at vise, at elmarkeder også er politiske arenaer præget af kampe om autoritet og indtægtsfordeling, og opfordrer til stærkere tværfagligt samarbejde mellem IR og de tekniske og økonomiske discipliner. Aktuelle energimæssige udviklinger i 2026 indgår ikke i datagrundlaget, men understreger emnets vedvarende relevans.
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