Capacity mechanisms control and coordination under EU law

Abstract

Intricate forecasting of the “need for energy”, the security of supply concerns, and other sectors’ issues cause difficulty in meeting the demand for electricity. Some Member States of the European Union address this challenge by employing capacity mechanisms, by which they interfere in the market. Introduction of these may be entangled considerably when the measure in question is regarded as State Aid. In such a case, the mechanism is subject to a check on compliance with the internal market. Its negative outcome can result even in a decision denying lawfulness of a measure. Due to this and the following implications, this paper discusses which mechanisms are checked within the control procedure, pursuant to the Treaties and case law of the EU Courts, as well as it analysing and assessing the conduct of said control procedure, concerning changes brought by the legislation package from June 2019.