Capacity mechanisms in the EU energy markets : law, policy, and economics / edited by Leigh Hancher [and three others].

Format:

Book

Contributor:

Hancher, Leigh, 1956- editor.

Language:

English

Subjects (All):

Power resources--Law and legislation.

Power resources.

Energy development--Law and legislation.

Energy development.

Energy security.

Physical Description:

1 online resource (556 pages)

Edition:

2nd ed.

Place of Publication:

Oxford, England : Oxford University Press, [2022]

Summary:

Energy capacity mechanisms have become a key feature in member states' energy markets and thus a significant topic in European regulatory debate. This second edition provides a thorough and up-to-date explanation of how capacity mechanisms work, their market implications, and the possible consequences for the European internal electricity market.

Contents:

Intro

Title Page

Copyright Page

Contents

Table of Cases

Table of Legislation

Table of Relevant Non-legislative Documents

List of Abbreviations

List of Contributors

Part I: Policy

1. European Union Policy on Capacity Mechanisms

1.1 Introduction

1.2 From the early cases linked to the 2003 Electricity Directive to the 2015-2016 sector inquiry

1.3 The 2019 electricity market reform

1.4 The development of the European courts' case law on capacity mechanisms

1.5 The discussion regarding competition law and sustainability and the Commission's CEEAG

1.6 Conclusion

2. The Regulators' View: Capacity Mechanisms and the EU Internal Electricity Market

2.1 Introduction

2.2 The contribution of energy-only markets to generation adequacy

2.3 Impact of capacity mechanisms: design and distortions

2.4 Capacity mechanisms in the Clean Energy Package

2.5 Setting the 'threshold price' in capacity mechanisms

2.6 Cross-border participation in capacity mechanisms

2.7 Conclusions and recommendations

3. Capacity Remuneration Mechanisms in the EU: Today, Tomorrow, and a Look Further Ahead

3.1 Introduction

3.2 Today: state of play

3.3 Tomorrow: the impact of the Electricity Regulation

3.4 A look further ahead: the role of the consumer

3.5 Conclusions

Part II: Economics

4. The EU Approach to Resource Adequacy

4.1 Introduction and overview

4.2 Resource adequacy and the reliability standard

4.3 Assessing resource adequacy

4.4 Improving resource adequacy

4.5 Cross-border participation in capacity mechanisms

4.6 Monitoring resource adequacy

4.7 Conclusions

5. Energy Market Design with Capacity Mechanisms

5.1 Introduction

5.2 Energy-only market-can it be sustainable?

5.3 What are the policy options-and how would they perform?.

5.4 Challenges for capacity market design in the transition towards net zero

5.5 Summary-when to use which capacity mechanisms?

6. Different Approaches for Capacity Mechanisms in Europe: Rationale and Potential for Coordination?

6.1 Introduction

6.2 A patchwork of capacity mechanisms in Europe: different designs fit different needs

6.3 Towards coordination of capacity mechanisms in Europe

6.4 Capacity mechanisms, the EEAG 2014-2020, and the Electricity Regulation

6.5 Coordinating capacity mechanisms in Europe

6.6 Conclusions

7. Resource Adequacy in Decarbonizing Power Systems: Lessons Learned from Both Sides of the Atlantic

7.1 Introduction

7.2 Design elements

7.3 Target market

7.4 Lag period (or lead time)

7.5 Contract duration

7.6 Reliability product

7.7 Indexation and warranties

7.8 Summary and high-level recommendations

8. The Generation Mix, Price Caps, and Capacity Payments

8.1 Introduction

8.2 Optimal generation mix

8.3 A competitive market leads to an optimal generation mix

8.4 A price cap distorts investment levels

8.5 Capacity payments restore efficiency

8.6 Renewable energy and demand participation

8.7 Conclusion

Part III: Law

9. Capacity Mechanisms and State Aid Control: A European Solution to the 'Missing Money' Problem?

9.1 Introduction

9.2 Policy evolution and state aids for energy-related measures

9.3 Funding capacity mechanisms: when do the state aid rules apply?

9.4 Compatible support-the EEAG 2014-2020

9.5 Notification and assessment procedures of national schemes

9.6 Conclusion on the EEAG 2014-2020

9.7 The Draft CEEG

9.8 Concluding remarks

10. The Antitrust Perspective to Capacity Mechanisms

10.1 Introduction

10.2 EU antitrust enforcement in the energy sector-a primer.

10.3 A typology of antitrust issues related to capacity mechanisms

10.4 The problem with the market definition

10.5 Selected anti-competitive practices under Articles 101 and 102 TFEU

10.6 Conclusions

11. Free Movement of Goods in the Labyrinth of Energy Policy and Capacity Mechanisms

11.1 Introduction

11.2 Energy as goods

11.3 Free movement of goods and state aid

11.4 Free movement of goods: restrictions

11.5 Free movement of goods: justification

11.6 The impact of sectoral harmonization: the Clean Energy Package

11.7 Solidarity

11.8 Conclusion

Part IV: Case Studies

12. Austria

12.1 Introduction

12.2 Setting the scene

12.3 Capacity mechanism

12.4 European dimension

12.5 Conclusion

13. Belgium

13.1 Introduction

13.2 Setting the scene

13.3 Old, 'deactivated', and new capacity mechanisms in Belgium

13.4 State tendering for new capacities

13.5 Strategic reserve

13.6 Reserve generation capacity

13.7 Capacity remuneration mechanism

13.8 European dimension

13.9 Conclusion

14. France

14.1 Introduction

14.2 Setting the scene

14.3 Capacity mechanism

14.4 European dimension

14.5 Conclusion

15. Germany

15.1 Introduction

15.2 Setting the scene

15.3 Energy-only market and reserve mechanisms

15.4 European dimension

15.5 Conclusion

16. Greece

16.1 Introduction

16.2 Setting the scene

16.3 Capacity mechanism

16.4 European dimension

16.5 Conclusion

17. Ireland

17.1 Introduction

17.2 Setting the scene

17.3 Capacity mechanism

17.4 European dimension

17.5 Conclusion

18. Italy

18.1 Introduction

18.2 Setting the scene

18.3 Capacity mechanism

18.4 Conclusion

19. The Netherlands

19.1 Introduction

19.2 Setting the scene

19.3 Energy-only market and the European dimension

19.4 Conclusion.

20. Norway

20.1 Introduction

20.2 Setting the scene

20.3 Energy-only market

20.4 European dimension

20.5 Conclusion

21. Poland

21.1 Introduction

21.2 Setting the scene

21.3 Capacity mechanism

21.4 European dimension

21.5 Conclusion

22. Spain

22.1 Introduction

22.2 Setting the scene

22.3 Capacity mechanism

22.4 European dimension

22.5 Conclusion

23. United Kingdom

23.1 Introduction

23.2 Setting the scene

23.3 Capacity mechanism

23.4 European dimension

23.5 Review of the capacity market

23.6 Conclusion

Index.

Notes:

Description based on print version record.

Includes bibliographical references and index.

Other Format:

Print version: Hancher, Leigh Capacity Mechanisms in the EU Energy Markets

ISBN:

0-19-194491-2

0-19-266666-5

0-19-266667-3