Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | https://doi.org/10.17645/pag.v7i1.1791 |
Resumo: | The impact of renewables on the energy markets–falling wholesale electricity prices and lower investment stability–are apparently creating a shortage of energy project financing, which in future could lead to power supply shortages. Governments have responded by introducing payments for capacity, alongside payments for energy being sold. The increasing use of capacity mechanisms (CMs) in the EU has created tensions between the European Commission, which encourages cross-country cooperation, and Member States that favour backup solutions such as capacity markets and strategic reserves. We seek to trace the influence of the European Commission on national capacity markets as well as learning between Member States. Focusing on the United Kingdom, France and Poland, the analysis shows that energy security concerns have been given more emphasis than the functioning of markets by Member States. Policy developments have primarily been domestically driven, but the European Commission has managed to impose certain elements, most importantly a uniform methodology to assess future supply security, as well as specific requirements for national capacity markets: interconnectors to neighbouring countries, demand side responses and continuous revision of CMs. Learning from other Member States’ experiences also play a role in policy decisions. |
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Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanismscapacity mechanisms; energy; electricity; Europeanisation; European Union; public policy; energy security; energy supply; state aidThe impact of renewables on the energy markets–falling wholesale electricity prices and lower investment stability–are apparently creating a shortage of energy project financing, which in future could lead to power supply shortages. Governments have responded by introducing payments for capacity, alongside payments for energy being sold. The increasing use of capacity mechanisms (CMs) in the EU has created tensions between the European Commission, which encourages cross-country cooperation, and Member States that favour backup solutions such as capacity markets and strategic reserves. We seek to trace the influence of the European Commission on national capacity markets as well as learning between Member States. Focusing on the United Kingdom, France and Poland, the analysis shows that energy security concerns have been given more emphasis than the functioning of markets by Member States. Policy developments have primarily been domestically driven, but the European Commission has managed to impose certain elements, most importantly a uniform methodology to assess future supply security, as well as specific requirements for national capacity markets: interconnectors to neighbouring countries, demand side responses and continuous revision of CMs. Learning from other Member States’ experiences also play a role in policy decisions.Cogitatio2019-03-28info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://doi.org/10.17645/pag.v7i1.1791oai:ojs.cogitatiopress.com:article/1791Politics and Governance; Vol 7, No 1 (2019): EU Energy Policy: Towards a Clean Energy Transition?; 92-1042183-2463reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAPenghttps://www.cogitatiopress.com/politicsandgovernance/article/view/1791https://doi.org/10.17645/pag.v7i1.1791https://www.cogitatiopress.com/politicsandgovernance/article/view/1791/1791Copyright (c) 2019 Merethe Dotterud Leiren, Kacper Szulecki, Catherine Banet, Tim Raynerhttp://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessLeiren, Merethe DotterudSzulecki, KacperRayner, TimBanet, Catherine2022-10-21T16:03:03Zoai:ojs.cogitatiopress.com:article/1791Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T16:13:44.773374Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms |
title |
Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms |
spellingShingle |
Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms Leiren, Merethe Dotterud capacity mechanisms; energy; electricity; Europeanisation; European Union; public policy; energy security; energy supply; state aid |
title_short |
Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms |
title_full |
Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms |
title_fullStr |
Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms |
title_full_unstemmed |
Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms |
title_sort |
Energy Security Concerns versus Market Harmony: The Europeanisation of Capacity Mechanisms |
author |
Leiren, Merethe Dotterud |
author_facet |
Leiren, Merethe Dotterud Szulecki, Kacper Rayner, Tim Banet, Catherine |
author_role |
author |
author2 |
Szulecki, Kacper Rayner, Tim Banet, Catherine |
author2_role |
author author author |
dc.contributor.author.fl_str_mv |
Leiren, Merethe Dotterud Szulecki, Kacper Rayner, Tim Banet, Catherine |
dc.subject.por.fl_str_mv |
capacity mechanisms; energy; electricity; Europeanisation; European Union; public policy; energy security; energy supply; state aid |
topic |
capacity mechanisms; energy; electricity; Europeanisation; European Union; public policy; energy security; energy supply; state aid |
description |
The impact of renewables on the energy markets–falling wholesale electricity prices and lower investment stability–are apparently creating a shortage of energy project financing, which in future could lead to power supply shortages. Governments have responded by introducing payments for capacity, alongside payments for energy being sold. The increasing use of capacity mechanisms (CMs) in the EU has created tensions between the European Commission, which encourages cross-country cooperation, and Member States that favour backup solutions such as capacity markets and strategic reserves. We seek to trace the influence of the European Commission on national capacity markets as well as learning between Member States. Focusing on the United Kingdom, France and Poland, the analysis shows that energy security concerns have been given more emphasis than the functioning of markets by Member States. Policy developments have primarily been domestically driven, but the European Commission has managed to impose certain elements, most importantly a uniform methodology to assess future supply security, as well as specific requirements for national capacity markets: interconnectors to neighbouring countries, demand side responses and continuous revision of CMs. Learning from other Member States’ experiences also play a role in policy decisions. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-03-28 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://doi.org/10.17645/pag.v7i1.1791 oai:ojs.cogitatiopress.com:article/1791 |
url |
https://doi.org/10.17645/pag.v7i1.1791 |
identifier_str_mv |
oai:ojs.cogitatiopress.com:article/1791 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://www.cogitatiopress.com/politicsandgovernance/article/view/1791 https://doi.org/10.17645/pag.v7i1.1791 https://www.cogitatiopress.com/politicsandgovernance/article/view/1791/1791 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2019 Merethe Dotterud Leiren, Kacper Szulecki, Catherine Banet, Tim Rayner http://creativecommons.org/licenses/by/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2019 Merethe Dotterud Leiren, Kacper Szulecki, Catherine Banet, Tim Rayner http://creativecommons.org/licenses/by/4.0 |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Cogitatio |
publisher.none.fl_str_mv |
Cogitatio |
dc.source.none.fl_str_mv |
Politics and Governance; Vol 7, No 1 (2019): EU Energy Policy: Towards a Clean Energy Transition?; 92-104 2183-2463 reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
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1799130591156764672 |