1.
Any capacity mechanism shall: be temporary; not create undue market distortions and not limit cross-zonal trade; not go beyond what is necessary to address the adequacy concerns referred to in Article 20; select capacity providers by means of a transparent, non-discriminatory and competitive process; provide incentives for capacity providers to be available in times of expected system stress; ensure that the remuneration is determined through the competitive process; set out the technical conditions for the participation of capacity providers in advance of the selection process; be open to participation of all resources that are capable of providing the required technical performance, including energy storage and demand side management; apply appropriate penalties to capacity providers that are not available in times of system stress.
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Source: EUR-Lex (Cellar) · retrieved 2026-10-30 · Text as adopted (Official Journal); later amendments are not incorporated in this text.