ACER calls for a much stronger coordination of resource adequacy policies to maximise the benefits of the Internal Energy Market

In view of both recent and future developments, ACER has assessed the impact of different Capacity Remuneration Mechanisms (CRMs) on the functioning of the Internal Electricity Market in a report published today. It observes that the lack of coordination has resulted in a patchwork of CRMs in the EU, which may be at the detriment of the market integration process. The report highlights the risks of short- and long-term distortions to the functioning of the IEM if the design of CRMs affects the natural price formation in the energy market and promotes a better coordination of security of supply measures at regional and European level. This report follows the Opinion on Capacity Markets provided by the Agency to the European Parliament’s Industry, Research and Energy (ITRE) Committee in February 2013 and is offered as a contribution to the forthcoming European Commission’s Communication on public intervention in the electricity sector, including capacity mechanisms.