ACER issues an Opinion on Capacity Markets upon request of the European Parliament

There is a growing concern in several EU Member States that electricity markets, given the current market design and the growing shares of (intermittent) renewable power generation, will not be able to deliver sufficient capacity to meet electricity demand at all times. The political sensitivity to blackouts, as well as uncertainties about when investors will build new generation based on market prices, has compelled a number of Member States to intervene in order to ensure that the required amount of capacity is available. Some Member States intervene or have the intention to intervene by introducing so-called capacity markets.
It is in this context that the Agency for the Cooperation of Energy Regulators, upon request of the European Parliament’s Committee for Industry, Research and Energy (ITRE), provided its opinion of 15 February 2013 on capacity markets.