Over the past decade, a number of European Member-States have introduced capacity remuneration mechanisms in response to electricity system adequacy concerns. These have been designed to reflect specific requirements at a Member-State level.
Recently, there is a growing discussion about creating regional capacity mechanisms covering several countries as a route towards more efficient capacity remuneration and deeper market integration.
In this discussion paper, Eurelectric and Compass Lexecon consider:
- The theoretical benefits of integrating capacity mechanisms at a regional level through creating a more efficient market for capacity remuneration
- The challenges to the regional integration of capacity mechanisms at a technical, operational and political level
- Practical steps that could be taken now to align methods across Europe and, where it makes sense, gradually move toward voluntary regional coordination on ensuring electricity system adequacy
For more information please contact:
Aida GarcÃa, Senior Advisor – Wholesale Markets – agarcia@eurelectric.org
Robert Birch, Advisor – Wholesale Markets – rbirch@eurelectric.org