Publications / Articles
Unilateral measures or EU coordination?The question of European capacity mechanismsPublished: 1 of June, 2013

From the perspective of both the long term operation of electricity systems with growing renewable capacities and system security it is important that sufficient regulating capacity is available for system level regulation and to meet peak demand. Under the current business model of electricity generation power plants mainly receive a compensation only for the produced electricity, which may interfere with the realisation of investments needed for the long run. Capacity mechanisms may offer a solution to this problem, the operation of which is the topic of our working paper.