Assessment of the impact of the capacity market in Poland on the electricity markets

 

In recent years, there has been concern in Poland over the security of electricity supply, which has increased due to the introduction of power restrictions in 2015.The ability of the current market to provide adequate remuneration for the availability of power and investment incentives is increasingly being questioned.With projected market energy prices, many power plants are not profitable, resulting in significant power shutdowns at a time when investments are needed to meet new emission abatement requirements - imposed by the conclusions on the best available techniques (BAT) for large combustion plants1 adopted inunder the Industrial Emissions Directive (IED).

In order to maintain the security of supply at a level that meets the reliability standard, the Polish authorities decided to create a Capacity Market (hereinafter "CM"), which should be constructed taking into account the specificity of the Polish power system.

Capacity mechanisms, including capacity markets, are examined by the European Commission (EC) in order to determine compliance with the provisions on state aid.The Commission communication Guidelines on State aid for environmental protection and energy-related objectives in 2014-2020 lists a number of criteria for the admissibility of CM by Member States, including demonstration of the necessity for intervention, as well as adequacy and proportionality with other possible energy market reformselectricity and the potential impact of the planned support on energy markets.

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