The European Commission has approved electricity capacity mechanisms to ensure security of supply in Belgium, France, Germany, Greece, Italy and Poland. Capacity mechanisms have the important objective of ensuring security of electricity supply. However, since these measures may hinder competition, cause higher electricity prices for consumers and curb electricity flows, they have to be well-designed. Thus, the Commission in close cooperation with national authorities assess each of capacity mechanism proposed by EU member states to ensure that strict criteria under EU state aid rules are met, particularly 2014 Guidelines on State Aid for Environmental Protection and Energy. The six capacity mechanisms approved in February cover a range of different types of mechanism, namely strategic reserves, market-wide mechanisms and measures specifically promoting demand response. Strategic reserves: Belgium and Germany Strategic reserves are meant to address security of supply risks. Belgium and Germany asserted that certain generation capacities should be kept outside the electricity market for operation only in emergencies. For Belgium, the reserve is needed to mitigate the supply risks due to Belgium's high reliance on an ageing nuclear fleet. For Germany, the reserve is needed to ensure security of supply during the ongoing reform of the German electricity market and to manage the phase-out of nuclear electricity generation. Both reserves are temporary, are open to all types of capacity providers and will be removed when the underlying market issue is solved. The Commission concluded that both measures comply with EU State aid rules. Market-wide mechanisms: Italy and Poland Italy and Poland claimed that capacity mechanisms in form of market-wide mechanisms are necessary where electricity markets face structural security of supply problems. Market-wide capacity mechanism allows a) capacity providers to obtain a payment for being available to generate electricity, b) demand response operators to obtain a payment for being available to reduce their electricity consumption. Both Italy and Poland clearly identified and quantified the security of supply risks. They face either significant amount of capacity risks exiting the market while new investments are unlikely, or market failures in the electricity market that prevent prices from incentivising power generators to keep existing capacity in the market or to invest in new capacity. Both mechanisms in Italy and Poland are open to all types of capacity providers and will keep costs for consumers in check thanks to competitive auctions to allocate capacity contracts. The Commission has found both measures compatible with EU State aid rules. Demand response schemes: France and Greece Capacity mechanisms adopted by France and Greece address demand response. These mechanisms allow demand response operator to react more quickly than electricity generators. In addition, demand response schemes are deemed environmentally friendly, since demand response schemes pay customers to reduce their electricity consumption in hours when electricity is scarce (additional production of electricity is not necessary). France has demonstrated that the scheme is necessary to enhance demand response due to extreme demand peaks during cold weather. Greece claimed that the scheme is necessary since it can play an important role in managing the tight electricity situation during cold spells. Both France’s and Greece’s measures are temporary. The Commission has found these measures compatible with EU State aid rules. Margrethe Vestager, European Commissioner for competition, said: "Capacity mechanisms can help to safeguard security of electricity supply, but they must be designed so as to avoid distortions of competition in energy markets. I am glad that our close cooperation with national authorities has enabled us to today approve well-designed capacity mechanisms in six EU countries. They will foster competition among all potential capacity providers to the benefit of consumers and our European energy market."