Capacity mechanisms – A credibility test for the Energy Union?

11 June 2015
Marco Giuli (Researcher in EU energy and climate policy, Institute of European Studies, Free University of Brussels)

In recent months, few issues have been as divisive as the subject of capacity mechanisms in the wider debate on the Energy Union, especially now that the EU is considering starting a sector inquiry in the workings of capacity markets in several EU member states. In this Policy Brief, Marco Giuli explains what capacity mechanisms are all about and what the specific implications are for the EU. He argues that the debate on capacity mechanisms is ill-framed, in a market context still focused on conventional generation, and calls for a coordinated approach to solve the fallacies of the present system.

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