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Capacity Mechanisms in EU Energy Markets: Law, Policy, and Economics 2nd ed

Edited by: Leigh Hancher, Adrien de Hauteclocque, Kaisa Huhta, Malgorzata Sadowska

ISBN13: 9780192849809
Previous Edition ISBN: 9780198749257
Published: October 2022
Publisher: Oxford University Press
Country of Publication: UK
Format: Hardback
Price: £190.00



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Capacity remuneration mechanisms (or simply capacity mechanisms) have become a fact of life in member states' energy markets and are one of the hottest topics in the wider European regulatory debate. Concerned about the security of electricity supply, national governments are implementing subsidy schemes to encourage investment in conventional power generation capacity, alongside already heavily subsidized renewable energy sources. With the increasingly connected European electricity markets, the introduction of a capacity mechanism in one country not only tends to distort its national market but may also have unforeseeable consequences for neighbouring electricity markets. As these mechanisms are adopted by member states with limited supra-national coordination as well as consideration for the cross-border impact, they tend to cause serious market distortions and put the future of the European internal electricity market at risk.

This second edition will take stock of how capacity mechanisms have actually worked so far and consider the consequences they have for the European internal electricity market. It will include a detailed overview of national capacity mechanisms, their implications for the EU internal market, and will outline the nature of market failures which are likely to occur in the European electricity markets. This edition is intended to serve as a point of reference for regulators and policy-makers on how to design optimal capacity mechanisms in Europe. It will be an invaluable resource for anyone interested in energy market design, regulation, and competition issues.

New to this Edition:

  • Reflects the new legal framework adopted by the EU since the first edition
  • Two entirely new chapters have been added - one focussing on resource adequacy in the new legal framework and one new country-specific chapter on Ireland

Subjects:
Energy and Natural Resources Law
Contents:
Part I: Policy
1:EU Policy on Capacity Mechanisms, Clemens Ziegler
2:The Regulators' View: ACER's Report on Capacity Mechanisms and the EU Internal Electricity Market, Alberto Pototschnig and Martin Godfried
3:Capacity Remuneration Mechanisms in the EU: Today, Tomorrow, and a Look Further Ahead, Tim Schittekatte and Leonardo Meeus

Part II: Economics
4:The EU Approach to Resource Adequacy, Francois Beaude
5:Energy Market Design with Capacity Mechanisms, Christoph Riechmann, Jens Perner, Sam Street, and Vikram Balachandar
6:Different Approaches for Capacity Mechanisms in Europe: Rationale and Potential for Coordination?, Fabien Roques and Charles Verhaeghe
7:Resource Adequacy in Decarbonizing Power Systems: Lessons Learned from Both Sides of the Atlantic, Carlos Batlle, Paolo Mastropietro, Pablo Rodilla, and Ignacio J. Pérez-Arriaga
8:The Generation Mix, Price Caps, and Capacity Payments, Bert Willems

Part III: Law
9:Capacity Mechanisms and State Aid Control: A European Solution to the 'Missing Money' Problem?, Leigh Hancher
10:The Antitrust Perspective to Capacity Mechanisms, Adrien de Hauteclocque and Ma/lgorzata Sadowska
11:Free Movement of Goods in the Labyrinth of Energy Policy and Capacity Mechanisms, Peter Oliver and Kaisa Huhta

Part IV: Case Studies
12:Austria, Thomas Starlinger, Elisabeth Wielinger, and Harald Kröpfl
13:Belgium, Wouter Vandorpe
14:France, Guillaume Dezobry
15:Germany, Kai Uwe Pritzsche and Katharina Reinhardt
16:Greece, Antonis Metaxas
17:Ireland, Seamus Byrne
18:Italy, Francesco Maria Salerno
19:The Netherlands, Marinus Winters and Tiemen Govers
20:Norway, Cathrine Ramstad Wenger, Frode Støle, and Jens Naas-Bibow
21:Poland, Ma/lgorzata Sadowska
22:Spain, Iñigo del Guayo
23:United Kingdom, Peter Willis