Emma Menegatti | S2E1 | Making Capacity Markets Work for Energy Security and Market Efficiency

In the first episode of the FSR Policy Briefcase – Season 2, hosts Leonardo Meeus and James Kneebone are joined by Emma Menegatti (FSR) to explore how capacity markets in the European electricity sector can be streamlined for better security of supply and market efficiency.

Building on Emma’s recent Policy Brief, the discussion unpacks the fundamentals of capacity mechanisms—what they are, why they matter, and the key reforms underway. The episode also highlights how relaxing cross-border requirements could enhance their effectiveness.

Learn more from the original policy brief:
https://fsr.eui.eu/publications/?handle=1814/77492

0:00 Introduction
3:55 History of capacity mechanisms
9:40 EU regulatory framework
11:37 Market design reform
14:49 Negative cross-border effects
19:30 Explicit cross-border participation
21:44 Avoiding over-procurement
23:59 Remuneration of interconnectors
26:09 Recommendations
29:26 Conclusion