Capacity Mechanisms Reigniting Europe's Energy Markets

The next twelve months may determine whether the EU can escape the thermal generation crisis. Many Member States have brought forward a range of capacity mechanisms to respond to the pressures on energy-only markets.

The European Commission now needs to assess these and other key Member States are considering their response. The balance of the conflicting policies must achieve broad industry buy-in, whilst delivering for consumers.

About the report

Capacity mechanisms. Reigniting Europe’s energy markets combines the regulatory expertise of Linklaters’ energy sector and competition specialists with external research and analysis from FTI-CL Energy to examine whether Europe can escape the thermal generation crisis.

Download the full report as a pdf document.


  • Executive summary
  • What went wrong?
  • Why the market hasn’t worked
  • Capacity mechanisms: different drivers, different choices, different outcomes
  • Capacity mechanisms: the rules on State aid
  • Capacity mechanisms: striking the balance
  • The way ahead

Also download our Annex which summarises on a country-by-country basis the current state of play on the implementation of capacity mechanisms.

Download the infographic (as pdf)