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Capacity Market Consultation Outcome and new Consultation on Technical Amendments

8 March 2019

The Department for Business Energy and Industrial Strategy (BEIS) have published a number of documents this week relating to the Capacity Market, including: A Consultation Report Response paper, Rule Amendments 2019, and a Technical Amendment Consultation that is open until 4 April 2019. 

ADE members can find out more here.

Capacity Market and Emissions Performance Standard review: call for evidence Consultation outcome

The government reviewed the Capacity Market (CM) and the Emissions Performance Standard (EPS) following a consultation period of 8-August-2018 to 1-October-2018. It sought views and evidence on the performance of the policies and on any opportunities to consider in ensuring they remain fit for the future.

Detail of feedback received

A total of 83 responses were submitted to the call for evidence by a wide variety of organisations.

There was overwhelming support amongst respondents for the Capacity Market and a clear majority thought the objectives remain appropriate. There were, however, calls to consider how the Capacity Market interacts with other markets to ensure future auctions secure a technology mix that minimises costs and is capable of fulfilling a range of energy objectives, not just addressing the generation adequacy problem.

They have stated that they are continuing to reflect on the full range of issues raised, and expect to consult further, as appropriate, on priority issues and other issues identified. As part of the Consultation outcome, please note the newly opened Consultation that is open on the Technical Amendments below. 

Capacity Market Rule Amendments

The Department for Business, Energy and Industrial Strategy (BEIS) have published an update to the Capacity Market Rules. They come into force from 6 March 2019. 

Capacity Market: Further Technical Amendments | Consultation

BEIS have published a consultation on additional measures to keep the Capacity Market (CM) running smoothly during the standstill period.

The consultation closes at 11:45pm on 4 April 2019

BEIS are seeking views on:

  • additional measures to keep the CM running smoothly during the standstill period
  • a limited number of priority changes identified through the call for evidence issued last summer as part of the Capacity Market 5 Year Review

The consultation seeks further views on technical amendments to the Capacity Market in response to the recent judgment by the Court of Justice of the European Union, including a replacement for the T-4 auction and other changes identified following the first Capacity Market: technical amendments consultation in December 2018.

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