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Rethinking Power Markets: Capacity Mechanisms and Decarbonisation

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Laurie van der Burg, Shelagh Whitley
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This report introduces capacity mechanisms—a policy instrument for power markets—to a non-expert audience. The authors consider the implications of capacity mechanisms for meeting parallel objectives of security of supply and decarbonisation. The report is focused on capacity mechanism developments in the EU and is directed at those who want to advance climate objectives but who have a limited background in power markets.