Part of the government’s Electricity Market Reform package, the Capacity Market will ensure security of electricity supply by providing a payment for reliable sources of capacity, alongside their electricity revenues, to ensure they deliver energy when needed. This will encourage the investment we need to replace older power stations and provide backup for more intermittent and inflexible low carbon generation sources.
The Capacity Market has also been designed to support the development of more active demand management in the electricity market.
The auction monitor has confirmed that actions performed by National Grid as EMR Delivery Body have in all material respects complied with the relevant Capacity Market rules and guidelines. Therefore in accordance with regulation 27 of the Capacity Market Regulations 2014, the Delivery Body have now published the final auction results.
Consultation on reforms to the Capacity Market, March 2016