Electricity capacity mechanisms must be used as a last resort in Europe’s power markets and should not be used to prop up inefficient and polluting generation, according to WindEurope.
WindEurope (formerly the European Wind Energy Association) chief executive officer Giles Dickson made the comments in response to the European Commission’s interim report on the impact of electricity capacity mechanisms.
“Keeping conventional power plants online solely for the purpose of back-up power is misguided,” he said.
“We must create a system that rewards flexibility to foster pan-European trading of electricity.
“This can be achieved by opening up new revenue streams to wind energy generators, supporting intra-day electricity trading and encouraging demand-side response among consumers.
“Taking these steps will reduce the need for redundant capacity on the system.”
Dickson concluded by calling on the Commission to come forward with an “ambitious legislative proposal” for the design of internal energy market before the end of the year.
The Commission report said capacity mechanisms could increase security of electricity supply but that many EU member states must be “more thorough assessing whether they are necessary and in their design to ensure they are targeted and cost-effective”.
If such mechanisms are unnecessary or badly designed they can distort competition, hinder electricity flows across borders and lead to consumers overpaying for electricity, it said.
The Commission report can be found here.
Image: Morgue File
