While assessing the scope of and pace of transition of coal-dependent regions one should not only focus on regulatory developments but to a much bigger extent on technological progress that enables substantial cost reduction of alternative energy sources. The transition has to also take into acco unt macroeconomic and social impacts and choose the most rational path given geopolitical considerations. Jud-ging from other countries’ experience, transition away from coal in electricity gene-rations takes decades rather than years, and should be managed in a way that does not compromise the security of supply and consumer cost issues.
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The aim of the article is to present the thesis, according to which legislative proposals that are included in the Clean Energy for All Europeans package (the so-called „Winter Package”) significantly affects Member States’ right to pursue their own energy policy. Key provisions of the proposed legislation, especially those included in the proposed Energy Market Regulation: additional requirements for the national capacity markets (European adequacy assessment, emissions performance standard) and the establishment of the Regional Operational Centres, would transfer some of Member States’ competences necessary to to ensure energy security to the EU-level. At the same time, the additional EU-level competences are not accompanied by clear liability rules and cost sharing methodology during possible system crises. Therefore, some of the regulatory solutions in the Winter Package may be regarded as inconsistent with the Treaty on the Functioning of the European Union.
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While assessing the future of coal-fired power plants on the European power market, a thorough analysis of regulatory, macroeconomical and technological development must be performed. Given the uncertainty surrounding the above aspects in a longer term, the investment strategy within the coal-fired generation should largely be based on available and future support mechanisms, which are essential for economical predictability of these sources, regardless of their usefulness for security of supply in the power sector.
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