Existing or foreseen restrictions on power peak prices, lack of credibility of carbon policy, the uncertain pace of development of renewable and nuclear policies, as well as energy efficiency policy targets, all induce a degree of policy risk. Private investors are not in the best position to handle these kinds of risk. Following the economic crisis, many OECD countries are currently experiencing a situation of excess capacity, and thus have a window of opportunity in which to address these issues before considering other more interventionist arrangements. This should be a priority as they will deliver economic benefits in terms of lower dispatching costs and better price signals and have the potential to substantially reduce the transitional costs associated with of decarbonisation. This includes improving renewable policies, removing restrictions on peak prices, creating more transparent and efficient market platforms for flexibility services, developing efficient locational pricing and integration of the day ahead, intra-day, balancing and reserve markets. Obviously, this is easier said than done and in particular improving climate policy depends on a range of wider issues including progress with international negotiations and will take time.