Q1: NO, because: TM only focuses on cross-border market/competition TM does not address harmonisation of national markets State interventions often distort and hinder market functioning Support schemes, priority dispatching, capacity remuneration mechanisms (CRMs) Q2: It has the potential to become, provided that: National markets are harmonised State interventions are coordinated at EU level TM properly addresses flexibility/scarcity pricing EU ETS system would work as designed 1

Q3: Most likely, YES: Past experience shows current governance is inefficient Implementation of NC brings improvements and clarifications, but Concerns on the efficiency of governance remain EU or regional decision making process still too complex Expectations for Market4RES: Is marginal cost pricing still fit for high RES market? What are the alternative ways to price energy? Can CRMs be avoided? What would be the alternative market design? 2

How can the current "EU-Target Model" provide efficient investment signals to reach the 2030 RES/GHG goals at acceptable socio-economic costs? 1.Implementation of all network codes 2.Coordination/harmonisation of state interventions 3.Focus on flexibility and scarcity pricing 4.Higher involvement of consumers 5.Reform of EU ETS scheme 6.Monitoring of the market (network codes) 7.Improvements on governance 8.Improvements to the market design 9.Coordinated approach to adequancy and CRM 3