Capacity market in Poland — Evalutaion of the proposed solution

Abstract

The first part of the article presents the assumptions of the capacity market in Poland that was recently presented by the Ministry of Economy. The mechanism is based on the centralized capacity market solution already implemented in Great Britain, however, introduces novel solutions such as separate auctions for new and existing power units. In the second part, we described the modifications that could be made in order to specifically address the problems of Polish power sector. The proposed changes are more likely to trigger new investments in the ecological and flexible power units located in the areas that support transmission system.