Ensuring adequate electricity generation (Communication)

Where the market is unable to secure adequate electricity generation, the Member States should, in the European Commission's view, be able to set up "capacity mechanisms" under certain conditions. These capacity mechanisms should meet certain criteria; they should, inter alia, be technology-neutral and accessible across borders. Beforehand, however, the Member States should firstly, assess whether there is in fact a shortfall in generation, secondly, identify and remove the causes for the shortfall of generation, and thirdly, evaluate which alternatives to capacity mechanisms could remove these shortfalls in generation, where appropriate.


If there is to be state aid for generating "secure" energy as well as for generating renewables, there will be virtually no "market" left in the deregulated internal electricity market. Depending on how they are set up, capacity mechanisms may run counter to the completion of the internal market. The Commission therefore rightly recommends conditions for their use. Where the use of capacity mechanisms is a policy choice, the recommended criteria at least reduce the risk of overly inefficient capacity mechanisms.