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EU Capacity Mechanisms May Be Badly Designed

The ECOreport reposts EU Competition Commissioner Margarethe Vestige’s interim report points to “room for improvement,” EU capacity mechanisms may be badly designed

Originally Posted on Energy Post

by Sonja van Renssen

EU member states are setting up capacity mechanisms that may be unnecessary, expensive and badly designed. This is the conclusion of the European Commission’s Competition Directorate in the interim report of its first ever “sector enquiry” into capacity mechanisms as a form of state aid for electricity producers. But the report shows that DG Competition has a different view than DG Energy about the future of the EU’s energy market design, writes Sonja van Jenssen from Brussels.

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