The European Commission believes that capacity mechanisms must go hand in hand with adapted market reforms, that the requirement for these mechanisms needs to be demonstrated and that the mechanisms themselves must be fit for purpose and open to all capacity providers. These are the conclusions reached by the competition services of the institution on Wednesday 30 November, in the final report of the sectorial investigation launched in 2015 (see EUROPE 11305).
These mechanisms guarantee the availability, at all times, of sufficient electricity production capacity to ensure reliable electricity supply. The European institution gathered information from 120 market players and public organisations regarding these mechanisms in 11 member states (Germany, Belgium, Croatia, Denmark, Spain, France, Italy, Ireland, Poland, Portugal and Sweden). 35 capacity mechanisms were examined, past, current or planned, the most common being a strategic reserve, which allows the member state to pay funds to certain power stations so that they can become operational if required.
Most of the member states have still to reform their markets in order to limit, or remove altogether, the need for a national capacity mechanism.
This is why when the member states plan to bring in capacity mechanisms, the Commission requires them first of all to implement the necessary market reforms.
Investigation revealed that many of the capacity mechanisms in place in Europe are insufficient to resolve specific security of supply issues. The assessments carried out by the member states of the security of supply situation are not sufficiently detailed and are not always based on an economically justifiable objective for the security of supply.
The Commission also takes the view that the raft of measures presented on the same day will respond to concerns in these areas. (Original version in French by Élodie Lamer)