The European Commission has approved the new capacity mechanism for the jointly operated Irish and Northern Irish electricity market ahead of the first auction of capacity contracts scheduled to take place next month.
The approval, which was given on Friday through the EU’s state aid rules, will enable power plants and other capacity providers in the all-Ireland market to obtain payments for being available to generate electricity.
In the case of demand response operators, the capacity mechanism will provide incentives for reducing electricity consumption to help balance demand with supply and ensure that demand for power can be met constantly in the Irish Republic and Northern Ireland.
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