EUGINE hosted 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 mechanism hosted by EUGINE on 22 March in the European Parliament.

Following an introduction by Ralf Wezel the key speech was delivered by Marcel Zürn from Rolls-Royce Power Systems as member of EUGINE’s TF on Market Design. The message was clear and fully in line with the views of DG Energy: The energy-only market needs to be reformed to make it work fully. As capacity mechanisms in all of the many existing forms distort the electricity market, they should only be an “ultima ratio” for member states. In that case the format of “strategic reserves” with capacities outside of the existing market should be used as the least distortive option and there should always be a phasing-out plan included.

In a lively discussion representatives of the European Commission and several member states expressed their views and concerns.