Observations on the planned Belgian capacity mechanism

ClientEarth challenges the planned Belgian capacity mechanism (Planned CM), asserting that it lacks a complete design and fails to demonstrate a genuine resource adequacy concern. The organisation argues that the scheme would unfairly favour gas capacity, contradicting EU objectives to phase out environmentally harmful subsidies and hindering decarbonisation. It further contends that the Belgian electricity market's resilience and the availability of less distortive alternatives, such as strategic reserves and market reforms, render a market-wide capacity mechanism unnecessary. ClientEarth also warns that the Planned CM could strengthen the market dominance of existing oligopolistic players and lacks sufficient preference mechanisms for low-carbon resources.

• The mechanism is argued to conflict with the objective of phasing out environmentally harmful subsidies by primarily aiming to increase gas capacity, which is a fossil fuel, rather than prioritising cleaner alternatives.
• ClientEarth disputes the existence of a genuine resource adequacy concern, noting that the National Regulatory Authority (CREG) issued a study in July 2019 that contradicts the findings of the transmission system operator Elia, suggesting no need for a market-wide capacity mechanism even in a nuclear phase-out scenario.
• The document suggests that a strategic reserve is a less distortive and more effective option than a market-wide capacity mechanism, noting that Belgium's previous strategic reserve was never activated because market parties responded proactively to scarcity signals.
• There are concerns that the Planned CM will reinforce the market dominance of the existing oligopoly, specifically Engie Electrabel and EDF Luminus, who hold the majority of market shares and are interested in new gas plants.
• The proposed length of capacity agreements, potentially up to 15 years, is criticised for being disproportionate and potentially hindering future market reforms.

APA

ClientEarth (2020). Observations on the planned Belgian capacity mechanism. https://www.clientearth.org/media/iblpblg4/clientearths-observations-on-the-planned-belgian-capacity-mechanism-ce-en1.pdf

Chicago

ClientEarth. Observations on the planned Belgian capacity mechanism. 2020. https://www.clientearth.org/media/iblpblg4/clientearths-observations-on-the-planned-belgian-capacity-mechanism-ce-en1.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Observations on the planned Belgian capacity mechanism |date=11 March 2020 |url=https://www.clientearth.org/media/iblpblg4/clientearths-observations-on-the-planned-belgian-capacity-mechanism-ce-en1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2020observations, author = {{ClientEarth}}, title = {{Observations on the planned Belgian capacity mechanism}}, publisher = {ClientEarth}, year = {2020}, month = mar, url = {https://www.clientearth.org/media/iblpblg4/clientearths-observations-on-the-planned-belgian-capacity-mechanism-ce-en1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }