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Home All news items {{item}} {{item.label}} Bringing the capacity mechanism into compliance: 4 call for tenders for new capacities {{vm.currentItem}}

On 12 June, 2019, on the decision of the Ministry of Energy, RTE is launching 4 calls for tenders for new capacities.

These calls for tenders bring the capacity mechanism into compliance with the decision of the European Commission of 8 November 2016. They are intended as an incentive to promote investment by guaranteeing winners a stable capacity remuneration for 7 years.

The Minister in charge of Energy has published this wednesday, a notice in the Official Journal of the European Union, to initiate the launch of calls for tenders for new capacities (AOLT in French). The launch of 4 calls for tenders for new capacities in 2019 is in response to the commitment made by the French authorities for bringing the capacity mechanism into compliance, with the decision of the European Commission of 8 November 2016. These calls for tenders are aimed at new capacities, to enable them to secure their remuneration under the capacity mechanism and thus encourage investment.

Henceforward, calls for tenders will be organized four years ahead of each delivery year, at the request of the Minister in charge of Energy to RTE. Transitional provisions are applied in 2019 in order to hold the calls for tenders this year, for which the realisation period starts in the 4 coming years. Four calls for tenders are being held in 2019. They relate to the realisation periods of 2020-2026, 2021-2027, 2022-2028 and 2023-2029.

A guaranteed price is set at the end of each call for tenders. Through the capacity mechanism, the winners of the call for tenders will benefit from a stable remuneration at the guaranteed price, for a realisation period of 7 years. Thus, during the period covered by the contracts, if the guaranteed price is higher than the market-clearing price, the successful bidder will be paid the difference. If not, it will pay the difference to a fund assigned for this purpose.

The participants now have until 12 November 2019 to prepare and submit their application for eligibility to RTE. The winners will be designated by the Minister in charge of Energy at the latest on 12 February 2020. To learn more, go on the page dedicated to calls for tenders for new capacities on the Customer Service Portal.

 

13 june 2019