11:30 A Raw Model for a North European Capacity Marke

This report explores different options for European capacity markets.

With the increasing use of renewable energy for electricity production traditional power plants become less profitable. At the same time, the intermittent nature of many forms of renewable electricity production means that these traditional power plants are still needed as backup capacity and to provide demand flexibility. To ensure that generators are prepared to build and maintain sufficient backup capacity, it may become interesting to introduce capacity markets in the EU. This report provides an overview of some of the different capacity mechanisms that are in use in various parts of the world today and proposed two solutions that the authors believe are most suited to European conditions.

All the conclusions in the report are the authors'.