Brussels debates power market reform
Last week’s ITRE committee meeting at the European Parliament. (EP)
A lack of profitability means Europe is closing around 6% of its gas- and coal-fired power plants each year, fuelling a debate on whether national subsidies are necessary to ensure security of supply in the longer term.
Several EU countries are introducing capacity mechanisms, which remunerate power generators for making capacity available in the future. Brussels sees such support schemes – usually funded by end-users – as market intervention that may be unlawful under EU state aid rules.