The implementation of state support measures for generation adequacy is nothing new, but the issue has clearly gained more prominence over the last two or three years. The eleven member states under review in the state aid sector enquiry have implemented (or are on the cusp of implementing) 28 different electricity capacity mechanism designs, raising more questions than answers at this stage. This variety raises doubt as to the possibility of harmonisation at Union level. However, harmonisation at regional level could limit distortions in the internal market. We also have to keep in mind that harmonisation (several compatible mechanisms) is not unification (a single mechanism), and is therefore more easily foreseeable. The debate on ex ante harmonisation should not be avoided or abandoned as the actions of the Commission based on its state aid (and other) powers have clear limits in this regard.
FSR Topic of the Month by Piero Carlo Dos Reis and Nicolò Rossetto New business models in a changing industry Green generation consists of technologies able to […] read more