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Coordinating European Capacity Mechanisms: Which Way Forward?

Coordinating European Capacity Mechanisms: Which Way Forward?
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This presentation explores the issues associated with the coordination of European capacity mechanisms. FTI-CL Energy expert, Fabien Roques described recent reforms to implement capacity mechanisms and highlighted the different issues and local specificities in the different member states. Some countries need more dependable capacity, others need flexibility to support renewables, and others are over-supplied by all measures. This implies that a “one-size-fits-all” approach is unlikely to work and can only be envisaged on a regional basis. Fabien outlined the different steps to drive some convergence in capacity mechanisms design across countries. He then described the recent European state aid guidelines on capacity mechanisms and highlighted the need for interconnection capacity. The presentation concluded by mapping alternative approaches for cross border participation in capacity mechanisms, as well as the practicalities associated with foreign generators’ reservation of interconnection capacity.