Generation capacity development 2015 in Europe

Capacities across conventional generation assets are shrinking, gas capacities are being mothballed due to difficult market conditions while renewables, especially wind and solar, are continuing their surge.

In order to meet the challenges brought about by decentralisation and intermittency, and to ensure security of supply, the market must adequately value energy, flexibility, and capacity.


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The share of fossil fuel fired capacity in the European power sector has declined significantly for the third consecutive year. Thermal capacity is removed from the supply portfolio due to various reasons: old age, unprofitability, and the evolution of European environmental legislation.

Under current electricity market conditions, generators struggle to recover their fixed costs and therefore mothball or decommission their assets. At the same time, the sector observes a significant increase in capacity from renewable technologies such as wind and solar.

In order to meet the challenges brought about by decentralisation and intermittency, and to ensure security of supply, the market must adequately value energy, flexibility and capacity.