Capacity Capacity Remuneration Mechanisms must align with decarbonisation objectives

16 Jun 2023
16 Jun 2023

Capacity Remuneration Mechanisms should support the development of renewable energy coupled with energy storage – not the fossil fuel industry.


On 15 June 2023, the Swedish Presidency of the Council submitted amendments in hope of facilitating the discussions on the revision of the Electricity Market Design.

These amendments include a derogation to the CO2 threshold on the capacity remuneration mechanisms for existing capacities started before 2019, representing a step backwards in the energy transition.

Such a measure would jeopardise the development of crucial sustainable and clean energy storage solutions and slow the transition to a resilient renewable electricity-based energy system.

The Coalition believes that this derogation would have a detrimental impact on investments and deployment of energy storage.

The only way forward is to lower the threshold and fully align Capacity Remuneration Mechanisms with the EU decarbonisation target. Europe must look towards clean technologies that provide the flexibility required to ensure the security of supply.

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