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Cross-border solidarity versus national capacity markets : risk of inadequate capacity procurement

In Europe, capacity markets are currently designed and operated at the national level, which can give rise to non-cooperative behavior. Member States may strategically...

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Jean-Michel explored supply demands in Paris

Gas

Claude Turmes (MEP for Luxembourg’s Green Party) has warned about over supply and the persistence of nuclear and fossil power in Europe.  Speaking to FSR Director Jean-Michel Glachant at the International Energy Agency in Paris, Turmes lamented the slow pace of energy transition in Europe.

“I think our biggest [security of supply] problem in this moment is over capacity,” he explained “we have so much coal and nuclear running despite the fact that we have deliberately decided to bring a lot of renewables to the system” 

Turmes was also keen to acknowledge the political dimensions, noting that “In Europe we optimised already our grid system and our methodology and our ability to deal with a crisis after the 2004-6 crisis with Russia and Ukraine, and now the issue is more to get pressure on member states… it is good that we work on the Gas security supply legislation which the European Commission proposed, but the bigger picture is how do we avoid too much political damage”.

 

Later, Jean-Michel Glachant spoke to Fulvio Fontini, an expert on European capacity mechanisms working for the Italian energy regulator (Autorita per l’Energia Elettrica il Gas). Fontini was concerned by security of supply and his views might explain the energy landscape that Turmes and his Green Party colleagues find so frustrating.

“There is an issue of security of supply,” he said “which is still a national issue, this is what the European legislation has to change… this is the way that we set up our rules, whatever can be done at national level should be done at national level providing that it is homogenised”

“One dimension of capacity is the dimension of assessing security of supply, whether it is effectively needed or not that you have a capacity mechanism, and what are the consequences of introducing capacity mechanisms for security of supply”

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