Capacity Market: carbon dioxide emissions limits
Detail of outcome
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.
The response also includes the government’s response to two other CM consultations:
- future improvements to the CM consultation, February 2020
- COVID-19 easements consultation, April 2020
Detail of feedback received
24 responses were received from a range of stakeholders, including:
- capacity providers
- system operators
- trade associations
Original consultation
Consultation description
On 4 July 2019, the Recast EU Electricity Regulation came into effect as part of the EU’s Clean Energy Package. The Regulation introduced a requirement for capacity mechanisms to put carbon dioxide emissions limits in place.
In order to comply with these limits in respect of new-build capacity and unproven DSR seeking to prequalify for the capacity auctions in early 2020, amendments to the Capacity Market Rules came into force on 18 July 2019. The government is now seeking views on how to most effectively implement the remainder of the provisions, in respect of existing capacity.
The proposed changes are intended to ensure existing capacity or DSR components that do not comply with the limits (such as coal, diesel, and possibly some inefficient gas generation) cannot receive capacity payments from the date of 1 July 2025.
Documents
Last updated 20 May 2020 + show all updates
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Government response published.
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Response deadline extended to 13 September 2019.
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First published.