Belgian capacity market will lead to oversupply – Anode

17/09/2019 09:25 Electricity Market

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Belgium’s plans to launch a capacity market could lead to an oversupplied system, which will hurt profitability for new and existing power plants, said Anode Energie portfolio manager Kris Voorspools.

TSO Elia was exaggerating the need for replacement capacity, with unprofitable plants kept online under the guise of security of supply reasons, Voorspools recently told Montel.

 

Belgium plans to hold its first capacity auctions in 2021 and aims to have new capacity ready by the end of 2025 – which remunerates operators for supplying back-up capacity – when the country’s seven nuclear reactors (5.9 GW) are due to be phased out.

 

Elia estimate Belgium needed 3.9 GW of replacement capacity but Voorspools believed the country’s demand could be met with a lower figure, adding the TSO’s fears last autumn of an imminent supply crunch due unplanned nuclear outages had proved unfounded. 

 

“A capacity market should be complementary to the spot market, not in direct competition with it,” he said.

 

Elia is currently holding a consultation on its capacity market design.

Source: montelnews.com

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