WATCH: European Capacity Mechanisms and What It Means for Norway

Abstract

As we navigate the complexities of the energy transition, ensuring a reliable and secure electricity supply as well as stable and affordable prices has become critical. Capacity Mechanisms have emerged as tools across Europe to tackle the adequacy challenges. The recent EU legislation of 2024 has cemented Capacity Mechanisms as a permanent feature of European electricity markets. This shift underscores the growing recognition of the need for robust systems to maintain resource adequacy and prevent shortages, especially with rising demand and the integration of renewable energy sources. Although Norway has not adopted Capacity Mechanisms, the developments in neighboring countries are impossible to ignore. The interconnected nature of our electricity grid, system, and markets means that Capacity Mechanisms implemented in Sweden and other European countries will inevitably impact Norway.

This presentation, will delve into the European journey towards integrating Capacity Mechanisms, examine the specific proposal in Sweden, and highlight why these developments are significant for Norway. Additionally, the critical role of demand flexibility and the barriers that hinder its participation in the markets will be discussed. By understanding these dynamics, we can better prepare for the future and ensure that our energy policies and laws remain resilient and forward-looking.

About the presenter

Astrid Skjønborg Brunt graduated from the University in Bergen in 1988. She started her career at the law firm Barfod, after which she started working as a lawyer for Statkraft, the Norwegian electricity producer. After a year, the industry liberalized and she continued working as a lawyer for Statnett SF, the Norwegian Transmission System Operator for electricity from 1991. For this same company, she became the General Counsel in the year 2000, a position she held until 2015. During this period the legal department developed from three to twelve in-house lawyers. She has worked on infrastructure projects, development work in Nepal, Namibia, Cambodia, El Salvador and Uganda, in corporate governance, and issues related to the development and integration of the European electricity market. Astrid is currently a PhD candidate at the faculty of law, University of Bergen

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