About: capacity mechanisms

Electricity 06-12-2017

Europe is not fighting hard enough to keep out coal subsidies

To prevent coal subsidies, the European Commission proposed a CO2 threshold for power plants to receive public subsidies. However, due to last minute edits from current EU President, Estonia, the door will be open for existing high-carbon power plants to receive public money to stay online, writes Kathrin Gutmann.

Energy 06-12-2017

Can energy governance replace binding targets?

Lawmakers will vote on Thursday (7 December) on a new energy regime that is meant to ensure the European Union meets its Paris Agreement goals. But much disagreement remains.

Electricity 17-10-2017

Estonian minister: ‘Nobody is objecting’ to CO2 limit on power plant subsidies

The European Commission’s proposal for a CO2 limit on power plant subsidies is supported by the Council of Ministers, insists Ando Leppiman. But now the issue is more how it can be managed, he told EURACTIV.sk.

Electricity 29-09-2017

Smoke, mirrors and coal dust  

Making coal power look like a worthy candidate for taxpayer support in a Europe moving to low carbon generation is no easy trick. A recent study tried to pull off this illusion and failed miserably, explains Dave Jones.

Electricity 26-09-2017

EU plan to cap fossil fuel subsidies will stymie renewables, power utilities warn

A European Commission proposal aimed at capping fossil fuel subsidies across the EU could have perverse effects by promoting investment in new gas-fired fossil fuel power instead of renewable energies, according to a new study.

Electricity 21-09-2017

EU still divided over curbing power subsidies with CO2 cap

A European Commission proposal to put an emissions limit on what power plants can be subsidised continues to divide the member states but the EU executive and the European Parliament stand united in supporting the CO2 cap.

Electricity 19-07-2017

German nuclear damage shows atomic and renewable power are unhappy bedfellows

A Germany nuclear plant was damaged because its operators increased and decreased its output to respond to energy grid fluctuations. The incident supports the theory that nuclear and renewable energy generation are incompatible. EURACTIV’s partner Der Tagesspiegel reports.

Energy 02-02-2017

Czechs against capacity mechanisms, regional centres in Winter Package

Electricity market design should provide equal conditions for all energy sources, avoid capacity mechanisms and build on bottom-up regional cooperation, according to the Czech Republic. EURACTIV.cz reports.

Energy 22-12-2016

Commission and member states clash over capacity mechanisms

The European Commission fears that capacity mechanisms would just translate into subsidies for coal power plants. Therefore, installations exceeding emission limits should not take part in support schemes, according to a proposal under the Energy Union's Winter Package. EURACTIV Czech Republic reports.

Energy 09-12-2016

Polish power rep: Commission’s vision of the electricity market is ‘slightly utopian’

Current market failures are well identified in the Winter Package. However, we feel that some of the proposals do not match the reality, Maciej Burny told EURACTIV Slovakia.

Energy 01-12-2016

Backdoor for coal subsidies remains half open under new EU rules

While it may seem like a gesture to coal-dependent countries such as Poland, the Winter Package of EU energy market rules, presented yesterday (30 November), will make using coal subsidies more difficult, writes Izabela Zygmunt.

Energy 30-11-2016

Commission defends new energy rules and climate ambition

The European Commission today (30 November) defended its 30% energy efficiency target, as opposed to the higher goal called for by MEPs and campaigners, as it unveiled "clean energy“ plans to boost renewable use, cut waste and reduce subsidies for coal power.

Energy 23-11-2016

EU throws in the towel over national energy support schemes

EU member states have pressed ahead with a variety of schemes to remunerate energy generators for keeping power plants on stand-by, despite warnings from Brussels. It now seems certain that such "capacity mechanisms" will remain a fact of life, at least for the foreseeable future.

Energy 23-11-2016

Analyst: ‘Member states can strong-arm Brussels on energy policy’

From nuclear plants in the UK and Hungary to coal-fired power stations in Germany, member states always manage to forge ahead with their energy projects, according to Georg Zachmann, who calls on EU leaders to sit down and seriously discuss the Energy Union’s governance.

Energy 22-11-2016

Eurelectric boss: ‘Orchestrated’ power markets must end

If European Union leaders don’t believe markets can work, then there’s no point having a carbon price to encourage renewable energies. And the energy market will always be “orchestrated” by national governments keeping fossil fuels subsidised, says Hans Ten Berge.

Energy 02-11-2016

Renewables could lose European power grid priority, documents reveal

Windfarms and solar power could soon lose the privilege of getting priority over other energy sources on European electricity grids, leaked documents show.

Energy 29-09-2016

EU power market ‘broken’, driven by politics, official admits

European Union attempts to create a single market for electricity are hampered by “legacy decisions” made by member states on energy mix, and political decisions to subsidise coal, gas and nuclear power, rendering it “fundamentally flawed”, said a senior EU official.

Energy 19-05-2016

Poland needs capacity market to avoid power shortages, says minister

Poland needs a power capacity market to help coal-fired power plants compete with producers of renewable energy and to avoid power shortages, the energy minister said on Wednesday (18 May).

Brexit 13-04-2016

Commission draws fire over support for British fossil fuel subsidies

New European Commission research has highlighted failings in the different state subsidies offered to electricity utilities across the EU, while giving qualified support to the ‘market-based’ model used in the United Kingdom.

Climate change 28-09-2015

Commission sends out more than 200 surveys in energy probe

EU regulators have sent out more than 200 questionnaires to companies and government agencies as part of an investigation into state subsidies offered to avoid power blackouts, the bloc's competition chief said on Monday (28 September).

Energy 03-06-2015

Germany to launch mini-energy union

Amid skepticism from many member states over the Commission’s planned European Energy Union, Germany is seeking to set an example by establishing a single energy market with its “electric neighbours”. EURACTIV Germany reports.

Transport 15-05-2015

Renewable energy storage will end capacity payments

Capacity payments and fossil energy can be made redundant by electric cars, writes Teodora Serafimova.

Energy 29-04-2015

EU investigates government subsidies to power stations

European Union regulators opened an extensive investigation on Wednesday into the way 11 EU governments subsidise utilities to ensure against blackouts, concerned that such support schemes may breach state aid rules.

Margrethe Vestager, Member of the European Commission in charge of Competition. 20 November. [EC]
Competition 02-04-2015

Commission to investigate ‘capacity mechanisms’ for illegal subsidies

EU state aid regulators will investigate whether European governments are paying illegal subsidies to utilities for holding power generation in reserve, EU officials said yesterday (1 April).