Why is a capacity market important for the energy transition?

The energy transition requires a flexible and reliable system. The energy transition demands electrification. The use of electricity increases, reducing the use of fossil fuels and greenhouse gas emissions. This additional electricity demand must be reliably supplied. Meanwhile, the share of CO2-free electricity production increases. A central capacity market ensures that there is always sufficient backup capacity available and stimulates investments in flexible solutions such as batteries, hydrogen, or gas plants.