Regional capacity markets in the EU: why and how?

Watch the recording of the online debate where experts discussed why and how to regionalize capacity markets in the EU:

The recent electricity market design reform has redefined the role of capacity mechanisms in the EU. No longer seen as temporary safeguards, these instruments now benefit from a streamlined State aid approval process. At the same time, an increasing number of Member States are considering introducing capacity markets in the coming years.

As capacity mechanisms become a key tool to drive investment and ensure security of supply, effective cross-border coordination will be essential. Such coordination can help avoid under- or over-procurement and direct investments toward the most cost-efficient locations across Europe. If capacity markets continue to expand and consolidate, the next step could be to integrate them regionally.

This debate will bring together representative of key EU institutions to discuss :

• What would be the benefits of integrating capacity markets across borders?
• How far can we go in capacity markets’ regionalisation?
• What are the main barriers – and potential solutions – to a regional approach?

Programme

Opening presentation

14.00-14.10 Presentation of the new FSR working paper: «Three steps to a regional capacity market in the EU»

Emma Menegatti | Florence School of Regulation

Panel Discussion and live polls

Moderator:  Leonardo Meeus | Florence School of Regulation

Panelists :

Miriam Stallone | European Commission – DG ENER

Daniel Ihasz-Toth | ACER

Marco Foresti | ENTSO-E

14.10-14.25 What would be the benefits of integrating capacity markets across borders?

14.25-14.40 How far can we go in capacity markets’ regionalisation?

14.40-14.55  What are the main barriers – and potential solutions – to a regional approach?

Closing and additional questions

Leonardo Meeus | Florence School of Regulation