Green light for an Italian measure limiting strict emissions under a capacity mechanism

On Friday 14 June, the European Commission approved an Italian measure introducing strict CO₂ emission limits as part of a capacity mechanism. 

In February last year, the Commission gave the green light to a market-wide capacity mechanism, as it considered that Rome had clearly identified and quantified the security of supply risks and that the mechanism was well-designed to mitigate such risks (see EUROPE 11956/11).

While the Italian authorities have not yet implemented this mechanism, they have notified the Commission of their intention to amend it. This means that only capacity providers that comply with stringent CO₂ emission limits to participate in the auction, as defined by the recently adopted Electricity Regulation (see EUROPE 12258/11).

In parallel, Rome will apply measures to ensure that the mechanism remains competitive in spite of the exclusion of some capacity providers. Thus, greener production capacities will gradually replace more polluting power plants.

Considering that this new measure will continue to ensure security of supply and further increase the level of environmental protection without unduly distorting competition, it was approved under EU State aid rules. (Original version in French by Lucas Tripoteau)