State aid: Commission approves revised French market-wide capacity mechanism

On 8 November 2016 the European Commission approved French plans for a capacity mechanism under EU state aid rules.

When the measure was first proposed the European Commission opened an in-depth investigation (November 2015), because it had concerns that the planned capacity mechanism might favour certain companies over their competitors and hinder the entry of new players.

In order to alleviate these concerns, France agreed to modify the initial mechanism. The Commission concluded that the revised measure improves the security of electricity supply whilst maintaining competition.