On 12 February 2021, the government released a proposal to amend the Act of 22 April 2019 on the capacity remuneration mechanism (the ‘CRM Act’), which has yet to fully enter into force.

The CRM Act aims to guarantee long-term security of the electricity supply after the phase-out of nuclear power. The CRM, as its name suggests, provides for capacity remuneration through a series of tenders and auctions. 

The mechanism must meet European requirements, as set out in sector regulations and the State aid rules. In order to bring the CRM Act into line with European requirements, a number of amendments have been proposed so that the first auction can take place in October 2021 on a sound legal basis.

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