The state aid sector inquiry into electricity capacity mechanisms: what is in the interim report of 13 April 2016?
On 29 April 2015, the Commission exercised its State aid powers by launching the first ever sector inquiry into the different (electricity) capacity mechanisms currently being considered or implemented by several Member States. In essence, capacity mechanisms are just another form of state-driven support which compensates (mainly) generators for their capacity, that is, their availability to produce energy at some point in the future. It is interesting to note that the inquiry was opened after the Commission gave the green light to the UK to proceed with its own mechanism, on the 23 July 2014, without raising serious doubts as to the legality of the mechanism notified.