The UK’s capacity market is a major barrier in the transition to a 21st century renewable energy and energy efficiency based ‘new energy economy’. It should be scrapped as soon as possible. The overall reason why it should be scrapped is that the very concept of propping up the 20th century model of centralised power plant delivering power through a vertically integrated system, which is what the capacity mechanism (CM) supports, is fundamentally wrong. The misplaced notion behind the CM is that the state needs to intervene to provide an additional signal (besides existing power markets) to ensure that conventional power plant are brought into to balance the load of so-called ‘intermittent’ renewable energy sources. Policymakers have mainly identified as combined cycle gas turbines, CCGTs, or nuclear power plant, as supplying the needed ‘firm’ capacity. This traditional system of course is run by the utilities, whose policy advice the Government have swallowed whole.
Dave Toke’s Blog 21st April 2019 read more »