Date: 2024
Type: Contribution to book
Capacity remuneration mechanisms : new rules, new problems?
Leigh HANCHER and Ignacio HERRERA ANCHUSTEGUI (eds), Research handbook on EU competition law and the energy transition, Cheltenham ; Northampton : Edward Elgar Publishing, 2024, pp. 347-363
HUHTA, Kaisa Iida Amanda, Capacity remuneration mechanisms : new rules, new problems?, in Leigh HANCHER and Ignacio HERRERA ANCHUSTEGUI (eds), Research handbook on EU competition law and the energy transition, Cheltenham ; Northampton : Edward Elgar Publishing, 2024, pp. 347-363
- https://hdl.handle.net/1814/77616
Retrieved from Cadmus, EUI Research Repository
This chapter overviews the legal approach to capacity remuneration mechanisms in the European Union (EU). Capacity remuneration mechanisms are legal frameworks adopted by Member States to ensure resource adequacy, which refers to the ability of all generation resources to meet electricity demand at all times. In practice, these frameworks create state-driven economic incentives for electricity producers to invest in new generation resources or to keep existing resources available when doing so would not necessarily be profitable in the energy-only market. In EU law, capacity remuneration mechanisms are considered state aid, which, if poorly designed, can severely undermine competition and the functioning of the internal energy markets. This chapter analyses the evolution of state aid cases on capacity remuneration as well as the secondary rules on capacity mechanisms adopted as part of the 2019 Clean Energy for All Europeans package.
Additional information:
Published online: 22 October 2024
Cadmus permanent link: https://hdl.handle.net/1814/77616
Full-text via DOI: 10.4337/9781803922591.00025
ISBN: 9781803922584; 9781803922591
Publisher: Edward Elgar Publishing
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