Consultation outcome

Capacity Market 2023: strengthening security of supply and alignment with net zero (Phase 1)

From:
Department for Energy Security and Net Zero and Department for Business, Energy & Industrial Strategy
Published
9 January 2023
Last updated
12 June 2023 — See all updates
This consultation has concluded

Download the full outcome

Capacity Market 2023 consultation: government response

PDF, 706 KB, 67 pages

Detail of outcome

We aim to take the proposals forward in 2 phases:

  • we will now seek to lay legislation in Parliament to amend the Capacity Market Rules and Electricity Capacity Regulations in order to implement the proposals from phase 1
  • we intend to undertake a further phase of analysis of the remaining proposals prior to a final decision on implementation in phase 2

We’re now consulting on the phase 2 proposals: Capacity Market 2023: Phase 2 proposals and 10 year review. This consultation closes on 8 December 2023.

Detail of feedback received

We received 65 responses from a wide variety of respondents including:

  • industry (including capacity providers)
  • public and commercial representation (including trade associations, industry bodies and charities)
  • research (including think tanks)
  • delivery partners (including government delivery partners)
  • finance (including investment firms and organisations)

The proposals were broadly supported by respondents, while others provided useful feedback which the government will consider as part of ongoing policy development.

Original consultation

Summary

We're seeking views on proposed reforms to the Electricity Capacity Market to strengthen security of supply and provide greater clarity for investors around the transition to net zero.

This consultation ran from
to

Consultation description

This consultation builds upon the Call for Evidence (CfE) published in July 2021 which sought views on proposals to better align the Capacity Market (CM) with the government’s net zero targets and improve delivery assurance across the scheme.

The proposed reforms set out in this consultation represent the next step in the evolution of the CM and have been considered in light of the Review of Electricity Market Arrangements (REMA) programme.

The main policy proposals fall into 3 categories:

  • strengthening security of supply
  • aligning the CM with net zero
  • other improvements to the CM

Read the BEIS consultation privacy notice.

Documents

Capacity Market Consultation: Strengthening security of supply and alignment with net zero

PDF, 550 KB, 65 pages

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Published 9 January 2023
Last updated 12 June 2023 + show all updates

  1. Government response published.

  2. First published.

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