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Assured Energy Outlook: Issue 30 – March 2019

Government to consult on further technical amendments to Capacity Market

The government has launched a new consultation on proposed further technical amendments to the Capacity Market (CM) to keep it “running smoothly during the standstill period”. The standstill period has been in effect since the November 2018 ruling by the General Court of the European Court of Justice (ECJ) that the scheme violated state aid rules.

The CM is a scheme Launched on 7 March; the consultation seeks views on the government’s three main proposals. The first is to conduct a replacement T-3 auction (to guarantee supply three years in the future) to be held in early 2020, securing capacity for delivery year 2022/23 and replacing the T-4 (four years in the future) auction previously scheduled for January 2019.

The second is the introduction of generating technology classes for renewable technologies such as solar and wind in the CM. The government said it had proposed this following the August 2018 Call for Evidence in which 85% of respondents to the question “Should wind and solar be allowed to participate in the Capacity Market?” were in favour.

The third is changes to the methodology for interconnector de-rating factors – the de-rating reflects the proportion of an electricity source, which is likely to be technically available to generate at times of peak demand. The deadline for submissions is 4 April.


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