A €300 million (£260m) Swedish strategic electricity reserve aimed at safeguarding the security of power supply in emergency situations has been approved by the European Commission.
The strategic reserve is a type of capacity mechanism that remunerates resources held outside the market and used in cases of emergency when electricity demand exceeds the available supply, which occurs in Sweden in the winter months.
It will be in place until 2035 and will be open to all projects that can contribute to achieving the security of supply objective, including power generation, demand side response and storage.
Electricity generation and storage units will offer their available to start supplying power and demand response units – typically large electricity consumers – will offer their availability to reduce power consumption at peak times.
Projects will need to comply with the CO2 emission limits set out in the EU Electricity Regulation to be eligible under the strategic reserve.
Capacity funded through the measure will not participate in electricity markets for the time in which it is subject to the reserve.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition said: “The measure approved today is a well-designed capacity mechanism that will ensure security of Sweden’s electricity supply.
“This reduces the risk of blackouts in the winter months. At the same time, the capacity funded through the measure will not participate in electricity markets, which limits any potential distortion of competition.”
EU approves €300m Swedish strategic reserve for power emergencies appeared first on Energy Live News.