Capacity Markets - delivering security of supply in the Internal Energy Market (IEM)

04 March 2015

Renaissance Hotel, Rue du Parnasse 19, 1050 Brussels, Belgium

As EU member states continue to take steps forward in the integration of electricity markets, new challenges arise from EU energy policy decisions. The 2030 framework deepens the EU ambition of decarbonisation. Alongside, increasing concerns over security of supply being voiced in many countries. In many of them, capacity markets are being implemented as market based mechanisms aiming to deliver long term system adequacy.

An uncoordinated approach of developing national capacity markets could, however, collide with the ambition of a truly competitive Internal Energy Market. If national developments go in very different directions, new barriers between national markets could be created.

EURELECTRIC has taken a clear position that an evolution towards a market design that properly values capacity alongside flexibility and energy makes sense in many markets. We have already outlined the main principles based on which capacity markets should be designed. In this conference, EURELECTRIC will further detail its views on how effective cross-border participation in capacity markets can be enabled so that they fit with the completion of the IEM. The main elements of a reference model for European capacity markets will also be discussed. EURELECTRIC is certain that the discussion will provide valuable input for the European Commission, as it steps up its efforts in taking a proactive stance on the discussion around the implementation of capacity markets in Europe.

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