For an Electricity Market Design that ensures Reliability and Adequacy
04 May 2023
EUTurbines and EUGINE jointly released their position paper on the European Commission proposal to improve the Union’s electricity market design.
In a nutshell, we propose to:
- Promote all climate-neutral solutions that provide flexibility by distinguishing between the technology, the fuel it uses and its emissions.
- Make sure that small-scale generation installations, including “behind-the-meter generation” (biogas, batteries, etc.) are included in all mechanisms (peak shaving, flexibility support schemes).
- Make Flexibility Needs Assessments as granular as possible and align them with the design of capacity mechanisms.
- Convert the national flexibility objective into a target and accompany it by an implementation roadmap.
- Design flexibility support schemes that reward the availability of a service (i.e., flexibility) and better link them to the adequacy assessments.
- Preserve and trigger investments in adequate firm and flexible capacities, request that the Commission reviews the current rules on capacity mechanisms by 2025.