Consultation outcome

Open letter on new technologies in the Capacity Market

Updated 1 December 2021

We are consulting with interested parties as to whether any new generating technologies have emerged since we consulted last year which could participate in future Capacity Market auctions. Rule 2.4 of the Capacity Market Rules requires the Secretary of State to consult with stakeholders each year by 1 October as to whether any new generating technologies which are capable of contributing to security of supply, and which are not already identified as a Generating Technology Class, should be eligible to participate in future Capacity Market auctions. This open letter accordingly seeks views on whether such new generating technologies exist.

In response to our consultation last year (October 2020), stakeholders identified tidal and geothermal as 2 new technologies which are not currently listed as a Generating Technology Class (GTC) in the Capacity Market and which may be able to contribute to security of supply in Great Britain in the future, although are not ready to do so right now. As a result, we raised the need for de-rating factors for tidal and geothermal technologies with the Electricity System Operator (ESO). They agreed to feed this into their prioritisation exercise for future development projects. Through this year’s consultation exercise, we are also keen to understand whether these technologies are any closer to being able to contribute to security of supply.

In our October 2020 consultation, we also noted the need to consider how electric vehicles connected to the grid could access the Capacity Market. Finally, we would welcome any views on the progress of this technology over the past year and its potential to contribute to security of supply.

Please respond with details of the technology and evidence of its contributions to security of supply to energy.security@beis.gov.uk by 11pm on 1 November 2021.

Some examples of the type of information that would support suggestions and aid our decision-making is provided below. Please note that this list is not exhaustive, and it is not necessary to provide all the information below in order for us to consider your suggestion. However, the more information we receive, the more evidence we are likely to have at our disposal to assist in our decision making process . If authorised, we may get in touch with respondents to ask follow-up questions. Please include your contact details in your response if you are open to receiving follow up questions. Please also indicate in your response whether you would like us to treat your response as confidential.

Types of information

• a brief description of the technology
• does the technology already exist, has it been deployed commercially at scale?
• is there any evidence to show that the technology is commercially viable, for example a proven business model?
• is the technology able to contribute to security of supply at periods of peak electricity demand e.g. by generating electricity or reducing electricity demand?
• what evidence is there relating to the reliability and availability of this technology at periods of peak electricity demand?
• is the technology significantly different from existing Capacity Market generating technology classes to warrant its own class?
• what is the fuel source or source of energy for the technology? If fuelled, is it a fossil fuel?
• is the output of this technology fully controllable or is it dependent on an intermittent energy source?
• are there any limitations on the length of time the technology can operate continuously at full capacity during peak periods, for example, due to limitations on fuel / energy source or running hours? If so, what are the typical duration limits?
• contact details (for any follow up questions)

We will publish the outcome of the review by 1 December 2021, as required by Rule 2.4.1(b) of the Capacity Market Rules.