Understanding the benefits of capacity mechanisms for social welfare

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A growing number of EU Member States have set up Capacity Mechanisms in recent years, as a way of ensuring the investments that are necessary for long term security of supply.

However, in upcoming trialogues, the European Commission and the European Parliament want to make capacity mechanisms a last resort in market design.

But what effect would this have on security of energy supply and the economic efficiency of electricity markets?

RTE, France’s Transmission System Operator and Europe’s leading electricity grid, recently conducted an analysis of seven studies and conducted its own economic impact assessment on the situation in France.

Read the executive summary of RTE’s study:
https://clients.rte-france.com/htm/an/mediatheque/telecharge/20180101_RTE_Capacity_Market_Impact_Assessment_Executive_summary.pdf

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