A review of determining reliability standards for electricity supply via value of lost load and cost of new entry in the EU

Ensuring security of supply is a cornerstone of European energy policy, particularly in the light of the increasing share of volatile renewable technologies. The EU's adequacy metrics, Value of Lost Load, Cost of New Entry, and Reliability Standard, play a critical role in guiding capacity mechanisms and market design. This paper presents the first systematic and comparative assessment of the practices of EU member states in calculating those critical metrics, as mandated by Regulation (EU) 2019/943, essential for capacity mechanism approval. The study identifies substantial deviations from the required methodology in the investigated 13 EU member states. These findings reveal fundamental challenges in achieving comparability and standardisation and underline the need for clearer guidance, improved transparency, and more consistent application to support fair and efficient capacity mechanisms across the European Union.