The finalized draft of revisions to the mechanism for Capacity Availability Tickets (CATs), used to compensate energy producers, is expected to be approved at today’s Regulatory Authority for Energy (RAE) meeting, paving the way for the completion of changes to the mechanism.
As has already been disclosed by EnergyPress, the main feature of the new and revised mechanism is the introduction of flexibility possessed by producers in their operations as a factor when determining compensation amounts.
The revisions to be applied to the mechanism will incorporate guidelines established by the European Commission and the EU body ACER, the Agency for the Cooperation of Energy Regulators.
The main objective of these revisions, as EnergyPress has previously reported, is to create a mechanism that will ensure adequate long-term power capacity. Contrary to conditions that have applied until now – besides supply security, the mechanism also catered to sustainability of existing investments – the only criterion to apply will be that of long-term electricity adequacy.
This will be based on three factors: capacity availability tickets (CATs), a flexibility mechanism, and a strategic stock mechanism.
The first of the three, the capacity availability tickets (CATs) currently being received by power-producing units will be maintained, but will be worth considerably less.
The revision’s second factor arrives as a new feature that will prove instrumental when determining payments for power-producing units. It will apply for units offering flexibility, or the ability to readily enter and exit the electricity supply system, depending on its needs. This factor will apply for natural gas units, hydropower plants, as well as hybrid wind-and-hydropower units.
The third mechanism is already being used and concerns only outdated Public Power Corporation (PPC) units, such as petrol-based plants that are used in emergency situations. It will remain applicable.