Capacity Market Solutions in Croatian and European Perspective
(Room D201-D202, Elicium, Second Floor)
10 Jun 15
9:00 AM
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10:30 AM
Tracks:
Theme: Europe's Transitioning Power Sector
Concern on the adequacy of production capacity led Croatia and some Member States of the European Union to consider so called Capacity Remuneration Mechanism, a program of support for investment in new capacity for the production of electricity and to compensate for existing plants to continue operating. There are several models of support mechanisms for capacity as a strategic reserve, capacity obligation, capacity auction, reliability options, capacity payment, as well as other models. These mechanisms must be technologically neutral, with a transitional exit strategy, with regional cross-border cooperation, with minimal impact on competition and trade, with the financial burden on consumers who influence the most on capacity shortfall. The article discusses this topic with the review of mechanisms in Europe and possible use for Croatian power system in regional context. It is seen what unique mechanism of support for capacity we need at least on the regional market, if not at the EU level, in order to efficiently integrate internal electricity market of the European Union.