CAN Europe Position on Capacity Mechanisms

Financing the transition

The European Commission’s legislative proposals included in the ‘Clean Energy for All Europeans’ package published on 30 November 2016 are as a whole not consistent with the objectives of the Paris Agreement to keep temperature rise well below 2°C and pursue efforts to limit it to 1.5°C, which require the immediate overhaul of EU climate and energy policies.

CAN Europe is concerned that the current and future widespread introduction of capacity mechanisms would run counter to the EU’s decarbonisation objectives.

Here are our key demands:

  • The decision to introduce a capacity mechanism should be a last resort option, resulting from a transparent EU-wide and regional system adequacy assessment as proposed by Articles 18 and 19.
  • All capacity mechanisms must prioritise demand response, storage and energy efficiency, and also be open to cross-border participation.
  • The Emission Performance Standard for capacity mechanisms set in art.23 (4) has to be tightened and must immediately apply to all existing plants.
  • A reference to Europe’s decarbonisation objectives should be inserted (Art. 18) and technical requirements on flexibility, efficiency and air quality should be included (Art. 23).

CAN Europe position on Capacity Mechanisms