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Climate | 16th November 2020

Belgian capacity mechanism: ClientEarth’s observations on Commission opening decision of 21.09.2020 (SA.54915)
Climate
State aid for a decarbonised Europe
Clean energy

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Belgian capacity mechanism: ClientEarth’s observations on Commission opening decision of 21.09.2020 (SA.54915)

The capacity mechanism proposed by the Belgian authorities to ensure security of supply in the country from 2025 is, as per our analysis, inconsistent with State aid rules, EU electricity market rules and the Green Deal objectives to phase out fossil fuel subsidies (that must include, in our analysis, subsidies to gas). A market-wide capacity mechanism is not necessary either to remedy adequacy issues that can be solved by market reforms. The Commission should take all these considerations into account in its assessment of compatibility of the capacity mechanism with state aid rules and the internal market.

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