Capacity Market: proposals for future improvements
Download the full outcome
Detail of outcome
The response outlines how the government intends to implement the majority of proposals outlined in the future improvements consultation.
The government will move to implement 5 of the 6 commitments referenced in the European Commission’s October 2019 final decision on state aid for the Capacity Market (CM), as well as remove the exclusion from the CM of plants with long-term contracts for providing short-term operating reserve (STOR), in addition to other minor improvements.
The response includes the government’s response to 2 other CM consultations:
- Capacity Market emissions limits, July 2019
- COVID-19 easements, April 2020
Detail of feedback received
33 responses were received from a range of stakeholders including trade associations and capacity providers.
Original consultation
Consultation description
The Commission’s 2019 State aid decision notes that the UK government has committed to implementing a number of improvements to the design of the Capacity Market (CM) to reflect recent market and regulatory developments, including those identified through our recent 5-year-review of the effectiveness of the CM.
This consultation seeks views on proposals to implement 5 of the 6 commitments referenced in the decision, as well as a review of the exclusion from the CM of plants with long-term STOR contracts and several other minor improvements.
We intend to publish a separate call for evidence on proposals to implement the sixth State aid commitment on enabling the direct participation of foreign capacity in due course.
Documents
Last updated 20 May 2020 + show all updates
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Government response published.
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First published.