EUGINE hosts discussion on Capacity Mechanisms in the European Parliament

Over 100 participants from the European Parliament, European Commission, representations of EU member states and energy policy lobbyists joined a dinner debate on capacity mechanisms hosted by EUGINE on 22 March in the European Parliament.

Following an introduction by EUGINE Secretary General Ralf Wezel, the key speech was delivered by Marcel Zürn from Rolls-Royce Power Systems. The message was clear and fully in line with the views of the European Commissions’ Directorate-General for Energy: the energy-only market needs to be reformed to make it work fully.

As capacity mechanisms currently distort the market, they should only be an “ultima ratio” for member states. In that case, the format of “strategic reserves” with capacities outside the market should be used as the least distortive option and there should always be a phasing-out plan attached to them.