CHAPTER IVRESOURCE ADEQUACY

Article 21General principles for capacity mechanisms

1

To eliminate residual resource adequacy concerns, F1the Secretary of State may, as a last resort while implementing the measures referred to in Article 20(3) of this Regulation F4..., introduce F2a capacity F3mechanism.

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3

F6The Secretary of State shall assess whether a capacity mechanism in the form of strategic reserve is capable of addressing the resource adequacy concerns. Where this is not the case, F7the Secretary of State may implement a different type of capacity mechanism.

4

F8The Secretary of State shall not introduce F9a capacity mechanism where F10any resource adequacy assessment F11has have not identified a resource adequacy concern.

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6

F13The Secretary of State shall review F14the capacity mechanism and shall ensure that no new contracts are concluded under that mechanism where F15the resource adequacy assessment F16has not identified a resource adequacy concern F17....

7

When designing capacity mechanisms F18the Secretary of State shall include a provision allowing for an efficient administrative phase-out of the capacity mechanism where no new contracts are concluded under paragraph 6 during three consecutive years.

8

Capacity mechanisms shall be temporary F19and shall be approved for no longer than 10 years. They shall be phased out or the amount of the committed capacities shall be reduced on the basis of the implementation plans referred to in Article 20. F20The Secretary of State shall continue to apply the implementation plan after the introduction of the capacity mechanism.