The capacity market is a support mechanism aimed at both electricity producers and consumers offering demand side response (DSR) services, with the primary goals of:

• creating conditions for stable operation of existing generation sources and their refurbishment
• providing clear price signals for investment in new generation capacities as well as the refurbishment of existing generation resources,
• establishing conditions for the safe development of renewable energy sources,
• limiting the investment cycle,
• facilitating the development of demand side reduction services (DSR).

The product in the capacity market is net available capacity during the delivery period along with the commitment to provide it during the system stress events that fall within the delivery period. This obligation is defined as a capacity obligation and is the subject of a capacity agreement signed with the Transmission System Operator (PSE).

The delivery period is:

• Delivery year – in the case of main capacity auctions,
• Delivery quarter – in the case of additional capacity auctions.

The capacity obligation can be verified between 7:00 AM and 10:00 PM on working days.

Verification:

• Occurs during the system stress events in the capacity market,
• Includes a mandatory demonstration of capacity performed once a quarter,
• May be subject to a test system stress event on the capacity market, executed at the request of PSE.

More information can be found in the educational section.