Capacity Mechanisms

Dr. Götz Reichert, LL.M.

Many of the power plants currently still in the market will be shut down in the medium term due to their age. As, in addition, the incentive to invest in new secure power-plant capacity is low, due to low wholesale electricity prices, more and more Member States are starting to develop "capacity mechanisms" which provide extra remuneration for the provision of secure capacity.

cepInput

According to the cep, it is necessary to examine whether sufficient electricity generating capacity can be ensured already by the expansion of cross-border power lines and greater integration of the internal energy market, before capacity mechanisms are brought in.

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