Policy & Regulation

Picking winners and losers in EU electricity

Industry is speaking out against proposed regulations that would effectively squeeze coal out of capacity mechanisms, calling for such decisions to be left to the markets Industry is speaking out against proposed regulations that would effectively squeeze coal out of capacity mechanisms, calling for such decisions to be left to the markets.
By The Wildcat 21 April 2017 0 25576
The Datteln 4 coal-fired power plant in Germany. (E.On)

AN EU proposal to exclude coal-fired power plants from participating in capacity remuneration mechanisms is facing strong opposition from the industry.

Stakeholder feedback to the European Commission’s mega-package for electricity market reform is now coming in thick and fast. Not surprisingly, a proposal to prevent coal-fired power plants from taking part in capacity mechanisms is proving controversial.

Capacity mechanisms – seen by the EU as a necessary evil to ensure security of supply – reward power plant operators for making capacity available into...