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17 May 2016
Europe needs capacity mechanisms!
At UFE’s initiative, 7 large associations of the German, Belgian, British, Irish, Italian, Portuguese and Spanish power sector published today a Joint Statement calling for an updated EU energy market design that includes both an Energy-only market and capacity mechanisms.
UFE, ASSOELETTRICA, BDEW, EA IRELAND, ELECPOR, ENERGY UK, FEBEG and UNESA underline that a market design relying only on short-term prices and a poor CO2 price will fail to trigger an efficient investment path, undermining the path towards a secure European energy transition at low-cost and failing to ensure a sufficient level of security of supply.
As such, the cosignatories call for the European Commission to swiftly improve and complete the “energy-only” with capacity mechanisms (generation, demand response or storage) ensuring the achievement of the targeted level of security of supply.
The European power associations stress in particular the need for:
- An updated European market design based on a combination of markets able to reveal the value of both low-carbon energy and capacity;
- Efficient, market-based capacity mechanisms able to deliver long-term price signals to complement the energy market;
- The recognition by the European Commission of the need for the swift implementation of such mechanisms;
- A consistent framework whose application must be systematic and non-discretionary.
They also support the implementation of regional capacity adequacy assessments, in addition to national ones, as well as a strengthened coordination of capacity mechanisms’ implementation at a European level.
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Events of the sector
Our 2023 annual conference
2023 annual conference of the Union of the French Electricity Industry
The 12th edition of the UFE annual conference has been held on 8th June 2023, in Paris.Watch the replay on YouTube