Belgium's capacity remuneration mechanism, designed for gas-fired power plants and batteries, limits demand response participation to only 1-year contracts, which prevents investors from justifying large capital investments (such as €100M projects) due to insufficient long-term revenue certainty, highlighting the need for longer-term participation frameworks (like 15-year contracts) to enable meaningful energy infrastructure development.
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Short Term Thinking Is Hurting #Belgium’s #Energy Future #shortsAñadido:
And there's a need to adapt the tools that we can uh become flexible. For instance, Belgium has a capacity remuneration mechanism, which is meant to provide capacity.
It is designed for a gas-fired power plants and batteries.
We can participate also with demand response, but only for 1 year. So, we can be selected for 1 year. I cannot uh build a 100 million uh investment on 1 year uh revenue. So, we would also like to participate for 15 years, but that's challenging.
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