Repost: https://mastodon.energy/@RegulatoryAssistanceProject/111143059357881228
@bram, #DominicScott & #Zuszsanna Pató shine light on RAP's concerns with #capacitymechanisms.
They explain 6 drawbacks to #CapacityMarkets (3 related to efficiency and 3 to competition) and how these might be addressed.
Check it out! 👇
Regulatory Assistance Project (@[email protected])
Over the last decade Europe has witnessed the growth of #CRMs – tools intended to provide added confidence of adequate resource when demand is forecast to push against the limits of supply. While recent European regulations promote reserve scarcity pricing as a baseline design feature and, ideally, a superior solution to resource adequacy concerns, ongoing Electricity Market Design discussions could yet conclude by accommodating these interventions more readily in market arrangements.