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Policy & Regulation

Court ruling poses challenge for UK power sector

A ruling by the EU Court of Justice has cast doubt over the UK’s subsidy scheme for power plants A ruling by the EU Court of Justice has cast doubt over the UK’s subsidy scheme for power plants.
By Andreas Walstad 19 November 2018 Europe & Russia / Policy & Regulation 0 33348
The Drax coal and biomass power station in the UK. (Drax)

The UK’s capacity market for power plants has been put on hold and may have to be revamped following a ruling last week by the European Court of Justice.

The Luxembourg-based court ruled that the European Commission approved the scheme without carrying out a thorough investigation to fully assess its compatibility with EU state aid rules, and that the system may favour power plants over demand-side response (DSR) operators. UK transmission system operator National Grid announced shortly after the ruling...