Cover Image

Capacity mechanisms in EU energy markets : law, policy, and economics.

Since the first edition of this book (2015), capacity remuneration mechanisms (or simply capacity mechanisms) have become a fact of life in European Union Member States' energy markets. Concerned about their security of supply, national governments are implementing subsidy schemes to encourage...

Full description

Bibliographic Details
Other Authors: Hancher, Leigh, 1956- (Editor), De Hauteclocque, Adrien (Editor), Huhta, Kaisa (Editor), Sadowska, Małgorzata (Editor)
Format: eBook
Language:English
Published: Oxford : Oxford University Press, [2022]
Edition:Second edition /
Subjects:
Energy security > European Union countries.
Sécurité énergétique > Pays de l'Union européenne.
Energy security
European Union countries
Laws of specific jurisdictions & specific areas of law.
Law.
Electronic books.
Online Access:Connect to the full text of this electronic book
Table of Contents:
  • Intro
  • Title Page
  • Copyright Page
  • Contents
  • Table of Cases
  • Table of Legislation
  • Table of Relevant Non-legislative Documents
  • List of Abbreviations
  • List of Contributors
  • Part I: Policy
  • 1. European Union Policy on Capacity Mechanisms
  • 1.1 Introduction
  • 1.2 From the early cases linked to the 2003 Electricity Directive to the 2015-2016 sector inquiry
  • 1.3 The 2019 electricity market reform
  • 1.4 The development of the European courts' case law on capacity mechanisms
  • 1.5 The discussion regarding competition law and sustainability and the Commission's CEEAG
  • 1.6 Conclusion
  • 2. The Regulators' View: Capacity Mechanisms and the EU Internal Electricity Market
  • 2.1 Introduction
  • 2.2 The contribution of energy-only markets to generation adequacy
  • 2.3 Impact of capacity mechanisms: design and distortions
  • 2.4 Capacity mechanisms in the Clean Energy Package
  • 2.5 Setting the 'threshold price' in capacity mechanisms
  • 2.6 Cross-border participation in capacity mechanisms
  • 2.7 Conclusions and recommendations
  • 3. Capacity Remuneration Mechanisms in the EU: Today, Tomorrow, and a Look Further Ahead
  • 3.1 Introduction
  • 3.2 Today: state of play
  • 3.3 Tomorrow: the impact of the Electricity Regulation
  • 3.4 A look further ahead: the role of the consumer
  • 3.5 Conclusions
  • Part II: Economics
  • 4. The EU Approach to Resource Adequacy
  • 4.1 Introduction and overview
  • 4.2 Resource adequacy and the reliability standard
  • 4.3 Assessing resource adequacy
  • 4.4 Improving resource adequacy
  • 4.5 Cross-border participation in capacity mechanisms
  • 4.6 Monitoring resource adequacy
  • 4.7 Conclusions
  • 5. Energy Market Design with Capacity Mechanisms
  • 5.1 Introduction
  • 5.2 Energy-only market-can it be sustainable?
  • 5.3 What are the policy options-and how would they perform?.
  • 5.4 Challenges for capacity market design in the transition towards net zero
  • 5.5 Summary-when to use which capacity mechanisms?
  • 6. Different Approaches for Capacity Mechanisms in Europe: Rationale and Potential for Coordination?
  • 6.1 Introduction
  • 6.2 A patchwork of capacity mechanisms in Europe: different designs fit different needs
  • 6.3 Towards coordination of capacity mechanisms in Europe
  • 6.4 Capacity mechanisms, the EEAG 2014-2020, and the Electricity Regulation
  • 6.5 Coordinating capacity mechanisms in Europe
  • 6.6 Conclusions
  • 7. Resource Adequacy in Decarbonizing Power Systems: Lessons Learned from Both Sides of the Atlantic
  • 7.1 Introduction
  • 7.2 Design elements
  • 7.3 Target market
  • 7.4 Lag period (or lead time)
  • 7.5 Contract duration
  • 7.6 Reliability product
  • 7.7 Indexation and warranties
  • 7.8 Summary and high-level recommendations
  • 8. The Generation Mix, Price Caps, and Capacity Payments
  • 8.1 Introduction
  • 8.2 Optimal generation mix
  • 8.3 A competitive market leads to an optimal generation mix
  • 8.4 A price cap distorts investment levels
  • 8.5 Capacity payments restore efficiency
  • 8.6 Renewable energy and demand participation
  • 8.7 Conclusion
  • Part III: Law
  • 9. Capacity Mechanisms and State Aid Control: A European Solution to the 'Missing Money' Problem?
  • 9.1 Introduction
  • 9.2 Policy evolution and state aids for energy-related measures
  • 9.3 Funding capacity mechanisms: when do the state aid rules apply?
  • 9.4 Compatible support-the EEAG 2014-2020
  • 9.5 Notification and assessment procedures of national schemes
  • 9.6 Conclusion on the EEAG 2014-2020
  • 9.7 The Draft CEEG
  • 9.8 Concluding remarks
  • 10. The Antitrust Perspective to Capacity Mechanisms
  • 10.1 Introduction
  • 10.2 EU antitrust enforcement in the energy sector-a primer.
  • 10.3 A typology of antitrust issues related to capacity mechanisms
  • 10.4 The problem with the market definition
  • 10.5 Selected anti-competitive practices under Articles 101 and 102 TFEU
  • 10.6 Conclusions
  • 11. Free Movement of Goods in the Labyrinth of Energy Policy and Capacity Mechanisms
  • 11.1 Introduction
  • 11.2 Energy as goods
  • 11.3 Free movement of goods and state aid
  • 11.4 Free movement of goods: restrictions
  • 11.5 Free movement of goods: justification
  • 11.6 The impact of sectoral harmonization: the Clean Energy Package
  • 11.7 Solidarity
  • 11.8 Conclusion
  • Part IV: Case Studies
  • 12. Austria
  • 12.1 Introduction
  • 12.2 Setting the scene
  • 12.3 Capacity mechanism
  • 12.4 European dimension
  • 12.5 Conclusion
  • 13. Belgium
  • 13.1 Introduction
  • 13.2 Setting the scene
  • 13.3 Old, 'deactivated', and new capacity mechanisms in Belgium
  • 13.4 State tendering for new capacities
  • 13.5 Strategic reserve
  • 13.6 Reserve generation capacity
  • 13.7 Capacity remuneration mechanism
  • 13.8 European dimension
  • 13.9 Conclusion
  • 14. France
  • 14.1 Introduction
  • 14.2 Setting the scene
  • 14.3 Capacity mechanism
  • 14.4 European dimension
  • 14.5 Conclusion
  • 15. Germany
  • 15.1 Introduction
  • 15.2 Setting the scene
  • 15.3 Energy-only market and reserve mechanisms
  • 15.4 European dimension
  • 15.5 Conclusion
  • 16. Greece
  • 16.1 Introduction
  • 16.2 Setting the scene
  • 16.3 Capacity mechanism
  • 16.4 European dimension
  • 16.5 Conclusion
  • 17. Ireland
  • 17.1 Introduction
  • 17.2 Setting the scene
  • 17.3 Capacity mechanism
  • 17.4 European dimension
  • 17.5 Conclusion
  • 18. Italy
  • 18.1 Introduction
  • 18.2 Setting the scene
  • 18.3 Capacity mechanism
  • 18.4 Conclusion
  • 19. The Netherlands
  • 19.1 Introduction
  • 19.2 Setting the scene
  • 19.3 Energy-only market and the European dimension
  • 19.4 Conclusion.
  • 20. Norway
  • 20.1 Introduction
  • 20.2 Setting the scene
  • 20.3 Energy-only market
  • 20.4 European dimension
  • 20.5 Conclusion
  • 21. Poland
  • 21.1 Introduction
  • 21.2 Setting the scene
  • 21.3 Capacity mechanism
  • 21.4 European dimension
  • 21.5 Conclusion
  • 22. Spain
  • 22.1 Introduction
  • 22.2 Setting the scene
  • 22.3 Capacity mechanism
  • 22.4 European dimension
  • 22.5 Conclusion
  • 23. United Kingdom
  • 23.1 Introduction
  • 23.2 Setting the scene
  • 23.3 Capacity mechanism
  • 23.4 European dimension
  • 23.5 Review of the capacity market
  • 23.6 Conclusion
  • Index.