Signature of the decree on capacity obligation market : A big step forward for the security of electricity supply

French minister Segolene Royal has signed this morning the decree for the implementation of the capacity mechanism. Four years after the adoption of the NOME Act, which established the French capacity obligation mechanism, the UFE, which has been involved for many years in the reflection on the tools to be implemented to ensure security of supply on the medium term, warmly welcomes this good news.
This signature of this decree is indeed the appreciation of many years of cooperation and excellent work between RTE, DGEC and the UFE.

Since 2008, UFE emphasized that, despite the control of energy demand, the continued and strong growth of the peak-demand was increasing, calling for the implementation of new tools to ensure security of supply at any time. In 2009, UFE has actively contributed to the report of French deputies Bruno Sido and Serge Poignant on electricity peak demand, a crucial step towards the adoption of the NOME law, which established the capacity obligation mechanism.

Since then, because of the national energy transition, the development of intermittent renewables, the electrification of appliances and the changes in the nature of demand, security of supply has become a core issue in France but also, now, in Europe.

While the European Commission has started its own reflection on the capacity markets in the EU, UFE has already anticipated this approach, establishing a partnership with its German counterpart, BDEW. In spring 2015, BDEW and UFE will publish the results of their joint study on the complementarity between energy-only and capacity markets, in France and Germany.

The UFE is certain that the security of supply and of the electrical system must already be tackled in a regional and European dimension.