Capacity mechanisms spark concern from power traders

Zest for subsidies could threaten plans for unified EU electricity market

Power lines
Subsidies could threaten plans for unified EU electricity market

The spread of capacity remuneration mechanisms (CRM) across Europe is causing concern among some power market participants, which fear the schemes will reduce the importance of the traded energy market and distort wholesale prices.

“We are very critical [of] capacity mechanisms,” says Daniela Zivadinovic, a spokesperson for Swiss utility Axpo. “We think that the establishment of a capacity mechanism is a regulatory intervention which most probably distorts energy markets and impacts electricity