The Union of the Electricity Industry (Eurelectric) has called for regional adequacy assessments to be conducted in Europe’s energy market.

The trade body thinks such assessments could lead to some countries introducing market-based capacity mechanisms.

Eurelectric said: “To minimise the impact on the energy market, these mechanisms should be sufficiently harmonised in their basic design criteria; they should be technology neutral, open to cross-border participation, open to new and existing generation, storage and demand, and produce as outcome contracts with the suppliers of capacity, with a lead time and duration that is consistent with the needs of investment decisions.

“When such a mechanism is introduced, it becomes a valuable tool for future adequacy analysis, since it provides a market-based assessment of the need for new capacity.”

End to regulated prices

Eurelectric’s latest report, entitled “Electricity market design: fit for the low-carbon transition”, also calls for:

  • The European Union (EU) Emissions Trading System (ETS) to become the main driver for investment in renewable energy;
  • Excess energy injected in the network should be priced at its true value;
  • An end to all regulated prices and the completion of the internal energy market.

> Download the report