Capacity Market: proposal regarding locational changes of Capacity Market Units
Applies to England, Scotland and Wales
Consultation description
The Capacity Market (CM) is regularly reviewed to ensure it remains fit for purpose, reflects changing market conditions and that the CM Rules ensure effective delivery and encourage participation to create competitive auctions.
The government has recently published a consultation on proposed changes to the Capacity Market Rules and Regulations. Alongside this, an urgent reform has been identified which requires a change to the Capacity Market Rules as soon as possible. The proposal aims to enhance the functionality of the scheme and strengthen delivery assurance. The consultation seeks views on the following change:
Remove the ability for CMUs to change their address after Prequalification: Changing the Rules to disallow any New Build Capacity Market Units (CMUs) or Demand Side Response (DSR) units from changing the location of a Generating Unit or DSR CMU Component after Prequalification. Removing the ability for New Build Projects to change their address would provide greater assurances that Applicant CMUs represent genuine New Build CMUs that can contribute to GB Security of Supply. This also better reflects the intent of the Capacity market that projects should be viable at the point of Prequalification.
The consultation is open to anyone to respond to but will be of particular interest to:
- energy industry
- consumer groups
- academia
- think tanks
- other organisations who have an interest in security of supply and decarbonisation
Read our consultation privacy notice.