Exploring the System Security Veil: Uncovering Domestic Motivation to Establish Capacity Remuneration Mechanisms (CRMs)

Nation states face critical trade-offs between energy security, efficiency, and climate goals when implementing Capacity Remuneration Mechanisms (CRMs). This study investigates factors influencing CRM adoption and design choices (targeted strategic reserves versus market-wide approaches) across EU member states from 2008–2021. Using logistic regression analysis on a new dataset, the research examines techno-economic, socio-technical, and political influences. Results show that while renewable integration creates legitimate security challenges, state responses reflect political preferences as much as technical necessities. Key adoption predictors include electricity heating dependence and gas energy share as well as intermittent energy, while interconnection capacity strongly predicts non-adoption — suggesting technical decisions often reflect deeper preferences about energy autonomy versus market integration. The choice between targeted and market-wide designs is influenced by party ideology, carbon intensity, and existing energy mix interests. This research reveals how functional pressures, generator interests, and politicization shape responses to system security concerns, which implies different decarbonization pathways.