Capacity remuneration mechanisms are currently at the forefront of the EU energy debate with the electricity sector, in particular, undergoing a considerable shake-up. One key element of this discussion, is cross-border participation in capacity remuneration mechanisms, which is becoming increasingly important to a Europe-wide approach of ensuring a sustainable security of supply and the efficiency of the internal energy market. In this podcast, Dan Roberts from Frontier Economics outlines the key issues surrounding cross-border participation. He considers it from several aspects: how much capacity should be allowed to cross over; if participation is permitted in more than one national scheme; who should participate – generators or interconnectors; what consumers are paying for; and lastly, the challenge of cross-border co-operation across Europe.
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