Research and analysis

Capacity Market: Technical derating factors for electricity interconnectors

This report provides recommendations on updated approaches to consider technical reliability which could be applied when determining interconnector de-rating factors in the Capacity Market.

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The government is exploring targeted improvements to the technical de-rating process for interconnectors in the Capacity Market, to ensure that the technical assessment approach undertaken by the government remain up to date and fit for purpose.

This provides an opportunity for greater transparency around the methodology that the government applies to reflect a technical reliability adjustment in the final step of setting interconnector de-rating factors.

As such, the government commissioned Frontier Economics and LCP Delta to provide updated approaches to consider technical reliability which could be applied when determining interconnector de-rating factors.

Updates to this page

Published 2 October 2025

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