Capacity Mechanisms in Europe and the US: A Comparative Analysis and a Real-Life Application for Greece

This paper presents a comparative analysis of various capacity mechanisms that are either in force or under approval key countries/regions Europe and the US. A detailed on necessities led to establishment mechanisms, along with fundamental technical operational features associated design operation different mainly (Italy, France, Germany, Belgium, Poland, Great Britain, Ireland, Cyprus) complementarily US (PJM, New England), presented. is complemented by real-life application regarding long-term remuneration mechanism expected be established Greece near future. simulation envisaged auctions differentiated scenarios has been performed, future Greek power system operating conditions during forthcoming decade (2022–2031). Test results illustrate outcome heavily dependent energy generation mix market participants’ bidding strategy. Whereas, total cost will have undertaken electricity supply companies and, ultimately, end-consumers for financing proposed lies range 5.5–8.7 €/MWh entire study period.