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Counting on the neighbours: challenges and practical approaches for cross-border participation in capacity mechanisms

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  • Fabien Roques

Abstract

Capacity mechanisms have been implemented in an uncoordinated way by many countries in Europe in recent years to ensure security of supply. The European Commission has defined, via the state aid guidelines, principles to minimize their impact on trade and competition in European electricity markets. The paper identifies the different drivers of these national reforms, maps the key issues associated with the coordination of capacity mechanisms across countries, and explores alternative approaches to allow for explicit cross-border participation in capacity mechanisms.

Suggested Citation

  • Fabien Roques, 2019. "Counting on the neighbours: challenges and practical approaches for cross-border participation in capacity mechanisms," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 35(2), pages 332-349.
    • Handle: RePEc:oup:oxford:v:35:y:2019:i:2:p:332-349.
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    File URL: http://hdl.handle.net/10.1093/oxrep/grz008
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    Cited by:

    1. Astier, Nicolas & Ovaere, Marten, 2022. "Reliability standards and generation adequacy assessments for interconnected electricity systems," Energy Policy, Elsevier, vol. 168(C).

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