Early in February, the European Commission approved six electricity capacity schemes as compliant with EU State aid rules, including the Italian and Polish market-wide mechanisms. Such a decision had been taken previously for the French and British capacity markets, which have completed their first and fourth years of auction respectively.
Last time, we recall the theoretical rationale behind implementing such a scheme (part I). Now it is time to focus on the French and British contexts (part II) before depicting detail the similarities and discrepancies between the UK and France’s capacity markets (part III).
What are the regulatory origins?
Why would you need such a mechanism?
What are the stated goals?
The third and final part on capacity markets will eventually describe the mechanisms features and results. Stay tuned!
[i] European Commission. (February 7, 2018). “State aid: Commission approves six electricity capacity mechanisms to ensure security of supply in Belgium, France, Germany, Greece, Italy and Poland.” Press release. <http://europa.eu/rapid/press-release_IP-18-682_en.htm>
[ii] European Commission. (November 8, 2016). “State aid: Commission approves revised French market-wide capacity mechanism.” Press release. <http://europa.eu/rapid/press-release_IP-16-3620_en.htm>
European Commission. (July 23, 2014). “State aid: Commission authorises UK Capacity Market electricity generation scheme.” Press release. <http://europa.eu/rapid/press-release_IP-14-865_en.htm>
[iii] (December 2013). “Energy Act 2013 (chapter 32)”. See Part 2 ELECTRICITY MARKET REFORM – Chapter 3 CAPACITY MARKET. <http://www.legislation.gov.uk/ukpga/2013/32/pdfs/ukpga_20130032_en.pdf>
[iv] (December 2010). « LOI n° 2010-1488 du 7 décembre 2010 portant nouvelle organisation du marché de l'électricité (1) ». See article 6. <https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000023174854&categorieLien=id>
[v] RTE. « Historique des consommations journalières en énergie ». Open data. <http://clients.rte-france.com/lang/fr/visiteurs/vie/vie_stats_conso_jour.jsp>
[vi] RTE. « Bilan électrique 2016 ». Website. <http://bilan-electrique-2016.rte-france.com/consommation/14-2/#>
[vii] RTE. « Parc national annuel de production par filière (2007 à 2017) ». Open data.
[viii] Department of Energy & Climate Change. (May 2012). “Electricity market reform:
policy overview”. See Introduction p. 3. <https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48371/5349-electricity-market-reform-policy-overview.pdf>
[ix] Department for Business, Energy & Industrial Strategy. (July 27, 2017). “Digest of UK Energy Statistics (DUKES): electricity”. See Chapter 5: Electricity. <https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/633779/Chapter_5.pdf>