Rynek mocy jako instrument wsparcia budowy nowych elektrowni – czy to zadziała?
Capacity Market as a Tool Supporting the Construction of New Power Plants – Will it Work?

Summary/Abstract: This article discusses selected legal issues of the Act on the Capacity Market, which are of importance to the evaluation of their impact on the terms and conditions of financing provided to new power generation capacities. These issues are analyzed in light of the market practice to date in the area of financing of new power generation projects and in the area of mitigating legal risks associated with this type of investments by way of legal concepts used in the documentation of the financing of such projects. The value of the revenue achieved from the capacity market service earned by capacity providers and the stability of these revenues are identified by the author as key issues here. The Author analyzes also the legal character of capacity agreements, legal effects of the execution of a capacity agreement in an electronic form in the course of a capacity auction or within the secondary market. He also comments on the legal effects brought by statutory concepts applicable to capacity agreements as well as their form onto the possibility to use a capacity agreement to secure the repayment of debt incurred in order to build new capacity market units. The author speaks in favour of being able to assign capacity obligation payments as collateral to secure debt of newly constructed capacity market units

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