Grenzüberschreitende Effekte von Kapazitätsmechanismen

The energy transition policy and the increasing share of renewables put the sustainability of the Energy-only-Market design in question. Some European countries intend to change such market design by introducing an additional capacity mechanism in order to support the provision of backup power plants separately. Such measure would stimulate incentives to invest into conventional power stations. Previous scientific literature offers a broad overview of the design options, benefits and drawbacks of these mechanisms. However, there is a lack of research regarding the induced externalities between neighbouring electricity markets. This article considers the strongly interconnected European market and analyses the implications of country-specific capacity mechanisms. It shows that small countries with a high volume of cross border trade are most badly affected by externalities. In order to avoid negative impacts (e.g. regarding security of supply), they need to imitate their neighbours’ regulatory framework. en