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Policy & Regulation

Belgian capacity market takes major step forward

Belgium’s parliament has approved a subsidy scheme that could shore up investor confidence in new gas-fired power plants, but final approval by the European Commission remains a hurdle Belgium’s parliament has approved a subsidy scheme that could shore up investor confidence in new gas-fired power plants, but final approval by the European Commission remains a hurdle.
By Andreas Walstad 9 April 2019 Europe & Russia / Policy & Regulation 0 34118
The Zandvliet CCGT plant in Antwerp. (Electrabel)

The prospects for new investment in gas-fired power plants in Belgium were boosted last week by the national parliament’s approval of a controversial capacity market.

Capacity auctions for power plants in Belgium and neighbouring countries could start in 2021, although approval from the European Commission remains a stumbling block. 

The subsidy scheme is designed to incentivise investment in new gas-fired plants to support the phase-out of Belgium’s last nuclear reactors. However, the scheme faces scrutiny from the commission, which will assess...