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Design principles for non-fossil flexibility support schemes Non-fossil flexibility support schemes applied by Member States in accordance with Article 19g(1) shall:

(a) not go beyond what is necessary to achieve the indicative national objective, or where relevant the provisional indicative national objective, defined pursuant to Article 19f in a cost-effective manner;

(b) be limited to new investment in non-fossil flexibility resources such as demand side response and energy storage;

(c) endeavour to take into consideration locational criteria to ensure that investments in new capacity take place in optimal locations;

(d) not imply starting fossil fuel-based generation located behind the metering point;

(e) select capacity providers by means of an open, transparent, competitive, voluntary, non-discriminatory and cost-effective process;

(f) prevent undue distortions to the efficient functioning of electricity markets including preserving efficient operation incentives and price signals and the exposure to price variation and market risk;

(g) provide incentives for the integration in the electricity markets in a market-based and market-responsive way, while avoiding unnecessary distortions of electricity markets as well as taking into account possible system integration costs and grid congestion and stability;

(h) set out a minimum level of participation in the electricity markets in terms of activated energy, which takes into account the technical specificities of the asset delivering the flexibility;

(i) apply appropriate penalties to capacity providers which do not respect the minimum level of participation in the electricity markets referred to in point (h), or which do not follow efficient operation incentives and price signals referred to in point (f);

(j) promote the opening to the cross-border participation of those resources that are capable of providing the required technical performance, where a cost-benefit analysis is positive.