CAN Europe’s response to the public consultations on Interim Report of the Sector Inquiry on Capacity Mechanisms. More info on the process can be found here.
Power markets with an increasing proportion of variable renewables can deliver the right kinds of generation capacity and other system resources to ensure stable and secure energy supply provided an adequate framework is in place. The real challenge for the European energy system is flexibility not shortages in generation capacity. This can be ensured through the better use and development of interconnections in Europe, demand side management and storage as well as better management of all system resources. Energy savings and demand management must be priority elements of a strategy to secure system adequacy, helping to reduce the need of overall generation capacity, particularly at peak loads, and to reduce the Union’s fossil fuels import bills.