Power capacity conundrum has potential to turn sour

EU and member states try to keep lights on in different ways

Mark Pengelly - Energy Risk

Capacity markets are an idea whose time appears to have arrived. In the European Union, countries are working hard to boost the proportion of their electricity generated by cleaner – albeit intermittent – renewable energy sources. Such countries need reliable on-peak capacity to step in and fill the gap when the wind refuses to blow or the sun fails to shine.

One of the most recent countries to move in this direction is the UK, with its Electricity Market Reform (EMR). Alongside the creation of

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