Date: 2021
Type: Working Paper
Capacity remuneration mechanisms in the EU : today, tomorrow, and a look further ahead
Working Paper, EUI RSC, 2021/71, Florence School of Regulation, [Electricity]
SCHITTEKATTE, Tim, MEEUS, Leonardo, Capacity remuneration mechanisms in the EU : today, tomorrow, and a look further ahead, EUI RSC, 2021/71, Florence School of Regulation, [Electricity] - https://hdl.handle.net/1814/72460
Retrieved from Cadmus, EUI Research Repository
In this paper, we discuss the implementation of Capacity Remuneration Mechanisms (CRM) in the European Union (EU). We first illustrate that the costs of CRMs in the EU are significantly lower than in the US. Next, we discuss how the Clean Energy Package (CEP) intends to limit the future role of CRMs. Two steps are introduced to check if CRMs are really needed: a European resource adequacy assessment and a national implementation plan to improve current electricity market design. In case residual adequacy concerns persist, the CEP also includes provisions to guide the design of a CRM. Last, we discuss the role of the consumer in securing resource adequacy in the future.
Cadmus permanent link: https://hdl.handle.net/1814/72460
ISSN: 1028-3625
Series/Number: EUI RSC; 2021/71; Florence School of Regulation; [Electricity]
Publisher: European University Institute