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Annex B: Costs of market-wide capacity mechanisms
Exhibit 8.2 – Costs of market-wide capacity mechanisms, scaled for peak demand in each Nordic country in 2023 (million euros)
Peak demand (GW), 2023:
Denmark 6,1 / Sweden 24,3 / Finland 13,2 / Norway 23,3
Note: Based on data from 2020-2024
Source:
ACER
.
Toolbox for a Secure Energy Supply
ABOUT THIS PUBLICATION
PDF
Foreword
1. Executive Summary
1.1 Introduction
1.2 Main design recommendations
1.3 Additional key takeaways
2. Setting the scene: Context and rationale for CRM and NFFSS in the Nordic Region
2.1 Summary
2.2 The Nordic energy-only market
2.3 Missing money problem
2.4 Regulatory background
2.5 Country and area specific challenges
2.6 Cost of CRMs in a Nordic context
2.7 Who can deliver capacity and flexibility?
3. Design objectives
3.1 Primary objectives: The energy trilemma
3.2 Secondary objectives
3.3 Design constraints
4. Key design elements and considerations
4.1 Summary
4.2 First order building blocks
4.3 Second order building blocks
5. Longlist of design alternatives
5.1 Summary
5.2 Capacity Remuneration Mechanisms (CRMs)
5.3 Non-fossil flexibility support schemes (NFFSS)
6. Shortlisting relevant design alternatives
6.1 Summary
6.2 Shortlisting of relevant mechanisms
6.3 Deep dive into shortlisted solutions
7. Assessment
7.1 Summary
7.2 Opportunities and challenges
7.3 Market-wide vs. targeted mechanisms
7.4 Assessment criteria
7.5 Assessment based on criteria
7.6 Interoperability
7.7 Nordic harmonisation
7.8 Second order building blocks
8. Recommendations
8.1 Summary
8.2 Different solutions for different needs
8.3 Cross-border participation
8.4 Other harmonisation initiatives
8.5 Second order building blocks
Annex A
Annex B
Annex C