Power capacity mechanisms worry EU electricity traders

Schemes pose threat to electricity markets and integration, firms say


To many of its advocates, the production of electricity from renewable sources is the stuff of dreams: a way of harnessing ambient energy found naturally in the environment, with no marginal cost of producing each additional megawatt of power. There is just one big catch: it is almost entirely dependent on the weather. That means a reliable source of back-up capacity is needed, which typically has to come from fossil fuels.

As the European Union moves towards its goal of a low-carbon power sector

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