Lessons from the Belgian Capacity Remuneration Mechanism (CRM)

Six European countries operate a capacity mechanism, and the Netherlands, Germany, Spain and Portugal are preparing to follow. Belgium runs the youngest and most compact of them: five auctions since 2022, 10 GW procured and €1.3 billion allocated. On its core task it has delivered – auctions clear below their caps and the contracted portfolio is genuinely mixed. Participation, however, carries a substantial administrative load. This white paper separates what EU law requires from what was a design choice, and shows where a second mover can design lighter from day one.

Trust, but verify
Keep ex-ante review for critical obligations, and let candidates declare low-criticality items – backed by audits and sanctions strong enough to deter false declarations.

Differentiate by what is at stake
An existing asset or a small battery does not carry the risk of a 100 MW new-build plant; financial securities and monitoring should reflect that.

Reuse what the system already knows
Connection, metering and permitting data already sit with DSOs, authorities and the TSO – asking candidates to resubmit it is the largest avoidable source of workload.

One entry point for DSO-connected capacity
Let the candidate deal with the TSO alone, and route the DSO confirmation through a standardized protocol between operators.

Mind the grid connection
A capacity contract does not help an asset that cannot connect in time; link realisation milestones to connection reality.

Download this White Paper

Get the full picture: eight concrete design lessons, the EU-law floor that no simplification can cut into, and what it means for the markets next in line.

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