Capacity remuneration mechanisms

Generation units are becoming less schedulable than traditional generation, creating resource adequacy and security of supply risks. TSOs must prevent these risks while navigating complex challenges: giving the right incentives, avoiding state aid issues, managing cross-border effects, and coping with evolving regulation. Implementation complexities and coordination challenges between neighboring systems add further operational burden.
The result: TSOs struggle to design mechanisms that balance adequacy objectives with regulatory compliance and operational feasibility.