Energy security concerns versus market harmony:The Europeanisation of capacity mechanisms

Leiren, Merethe Dotterud, Szulecki, Kacper, Rayner, Tim and Banet, Catherine (2019) Energy security concerns versus market harmony:The Europeanisation of capacity mechanisms. Politics and Governance, 7 (1). pp. 92-104. ISSN 2183-2463

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The impact of renewables on the energy markets-falling wholesale electricity prices and lower investment stability-are apparently creating a shortage of energy project financing, which in future could lead to power supply shortages. Governments have responded by introducing payments for capacity, alongside payments for energy being sold. The increasing use of capacity mechanisms (CMs) in the EU has created tensions between the European Commission, which encourages cross-country cooperation, and Member States that favour backup solutions such as capacity markets and strategic reserves. We seek to trace the influence of the European Commission on national capacity markets as well as learning between Member States. Focusing on the United Kingdom, France and Poland, the analysis shows that energy security concerns have been given more emphasis than the functioning of markets by Member States. Policy developments have primarily been domestically driven, but the European Commission has managed to impose certain elements, most importantly a uniform methodology to assess future supply security, as well as specific requirements for national capacity markets: interconnectors to neighbouring countries, demand side responses and continuous revision of CMs. Learning from other Member States’ experiences also play a role in policy decisions.

Item Type: Article
Uncontrolled Keywords: capacity mechanisms,electricity,energy,energy security,energy supply,european union,europeanisation,public policy,state aid,sociology and political science,public administration,sdg 7 - affordable and clean energy ,/dk/atira/pure/subjectarea/asjc/3300/3312
Faculty \ School: University of East Anglia > Faculty of Science > Research Centres > Tyndall Centre for Climate Change Research
Faculty of Science > School of Environmental Sciences
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Depositing User: LivePure Connector
Date Deposited: 26 Apr 2019 13:30
Last Modified: 21 Oct 2022 22:38
DOI: 10.17645/pag.v7i1.1791

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