EU greenlights six backup power schemes

The European Commission has approved six schemes for backup electricity to ensure security of supply. It said the power capacity mechanisms in Belgium, France, Germany, Greece, Italy and Poland comply […]

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By Priyanka Shrestha

The European Commission has approved six schemes for backup electricity to ensure security of supply.

It said the power capacity mechanisms in Belgium, France, Germany, Greece, Italy and Poland comply with the rules aimed at preserving competition in the single market.

The schemes in Belgium and Germany are for strategic reserves, which keep certain generation capacities outside the electricity market for operation only in emergencies.

In France and Greece, the schemes specifically promote demand response, under which customers are paid to reduce their electricity use when power is scarce.

Italy and Poland have similar initiatives and capacity providers can also receive payments for being available to generate power when needed.

Commissioner Margrethe Vestager, in charge of competition policy said: “Capacity mechanisms can help to safeguard security of electricity supply but they must be designed so as to avoid distortions of competition in energy markets.

“I am glad that our close co-operation with national authorities has enabled us to today approve well-designed capacity mechanisms in six EU countries. They will foster competition among all potential capacity providers to the benefit of consumers and our European energy market.”