The Department for Business, Energy & Industrial Strategy (BEIS) has outlined reforms to the Capacity Market auction system which will enable demand-side response technologies to bid for 15-year contracts while adding a carbon emissions limit to spur an increase of low-carbon assets offered contracts. The Capacity Market has long been criticised for failing to offer demand-side response services more than a one-year contract in auctions while also receiving complaints about failing to consider and verify the carbon intensity of contracted technologies. In response to an industry consultation, BEIS has now confirmed that demand-side response technologies will be able to bid for “all the agreement lengths available” in the Capacity Market, which reaches up to 15 years. This is subject to the bidder demonstrating that relevant capital expenditure thresholds can be met.
Edie 20th May 2020 read more »
The government response to this consultation is available on the future improvements to the Capacity Market (CM) consultation. The response outlines how the government intends to implement the finalised proposals outlined in the emissions limits consultation. The government will apply carbon emission limits to ‘existing capacity’ (capacity which existed before 4 July 2019) from October 2024.
BEIS 20th May 2020 read more »