Recognising that energy markets might not always be able to meet demand on their own, the European Commission allows EU Member States to operate Capacity Mechanisms (CMs). These schemes introduce public funds to the electricity market, to help make sure there is always spare power for the grid, even as demand and supply fluctuate. But the designs of the CMs are proving contentious, and legal challenges to CMs threaten to shut them down. A British firm, Tempus Energy, has already challenged the UK’s CM in court, leading to the suspension of CM auctions in that country. A similar case from Tempus before the courts now threatens the Polish model, and could lead to further cases against CMs across the EU. In the first of two articles on this subject, political columnist Joe Mitton looks at the policy questions around CMs, and the legal cases, while Energy Post’s Matthew James spoke to senior European Commission officials about the issues.
Energy Post 31st May 2019 read more »