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National capacity mechanisms in the European internal energy market: opening the doors to neighbours

P. Mastropietro, P. Rodilla, C. Batlle

After decades of strong opposition, several European countries are now in the process of implementing some kind of Capacity Remuneration Mechanism (CRM). Unfortunately, these national initiatives seem to aim at energy autarky rather than seeking a wider regional coordination. This situation can significantly affect the potential benefits of an integrated long-term expansion of the European power system. In this paper the regulatory basis for the effective participation of foreign agents in national CRMs is discussed. The authors support that two pillars are required: (1) stronger coordination among TSOs1 and respect for the Security of Supply Directive and (2) introduce a particular type of firm cross-border nominations associated to the CRMs commitments. These proposed nominations are to be considered only in situations of system stress. As discussed here, this allows not requiring any type of ex-ante cross-border capacity reservation, thus avoiding many of the inefficiencies associated to traditional physical bilateral contracts.


Palabras clave: Capacity Remuneration Mechanisms; Internal Energy Market; European Union; Reliability Options; Price Coupling


Energy Policy. Volumen: 82 Páginas: 38-47

Índice de impacto JCR y cuartil WoS: 3.045 - Q1 (2015); 4.880 - Q1 (2018)

Referencia DOI: DOI icon 10.1016/j.enpol.2015.03.004    

Publicado en papel: Julio 2015. Publicado on-line: Marzo 2015.



Cita:
P. Mastropietro, P. Rodilla, C. Batlle. National capacity mechanisms in the European internal energy market: opening the doors to neighbours. Energy Policy. vol. 82, pp. 38-47, Julio 2015. [Online: Marzo 2015]


    Líneas de investigación:
  • *Diseño y regulación de mercados energéticos

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