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Regional Electricity Market Design

image of Regional Electricity Market Design

Do current electricity market designs ensure a sufficient electricity supply at all times? This topic is currently the subject of intense debate across Europe, and several major countries such as Germany, the UK, France and Italy have decided that additional measures – so-called capacity remuneration mechanisms – are needed to supplement current market designs. This report describes and analyses the advantages and disadvantages of a range of measures proposed or currently implemented across Europe, and includes both best estimates of how the implementation of these measures will impact Nordic electricity prices as well as recommendations to the Nordic countries regarding a cost-efficient path to ensuring the Nordic security of supply.

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Capacity mechanisms in selected European countries

Capacity mechanisms are a hot subject in security of supply debates across Europe. Several new capacity mechanisms are currently being implemented. In places where they are not, existing mechanisms are either in revision or up for debate. An overview of the current European capacity mechanism situation is given in the map below.

English

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