3.3 A Strategic Reserve? Or a Capacity Market?
A Strategic Reserve? Or a Capacity Market?
Many methods are used to maintain security of supply in today's energy market. Such methods are usually denoted by the term 'Capacity Mechanisms', which are policy instruments for maintaining security of supply in electricity.
Several member states of the EU are considering, or are already implementing, a capacity mechanism. The main choice is usually either a strategic reserve and some form of a capacity market. The focus of this video will be on how these capacity mechanisms work, highlighting the advantages and disadvantages of both.