Comparing Capacity Market Designs in France and (potentially) Germany

Analysis of the power market design discussion and adequacy challenges in France and Germany

  • Project Duration: 08/2014 - 06/2015

France and Germany, the two largest electricity markets in Europe, are at different stages in the political and technical debate on future resource adequacy and power market design. In France, a decentralized capacity market has been enacted by law and the mechanism is due to start in 2015. Meanwhile, the debate in Germany continues.

This project aims to provide a better understanding of the adequacy challenges and market design discussion in the two countries. It describes in depth different proposals currently on the table, and it specifically discusses the consequences of the unilateral implementation of a decentralized capacity market in France for the French and German electricity markets, as well as its cross-border effects.

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