Portugal to launch capacity mechanism for electricity security

The Portuguese government is moving forward with a capacity mechanism to pay for energy availability at critical moments, following a supply security report (RMSA-E) by DGEG, REN and ERSE. The report set a reliability standard of 1.46 hours of acceptable risk per year and found stronger guarantees are needed as electrification and new consumption patterns, driven by electric mobility and industry, grow. The mechanism will use a competitive model open to generation, storage and demand management, aiming for lowest cost to consumers. The government will now begin pre-notifying the European Commission for approval.