Policy paper

Capacity Market update: de-rating interconnector CMUs

Description of the de-rating methodology for interconnector CMUs in the Capacity Market.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Documents

Capacity Market update: De-rating Interconnector CMUs

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Historical approaches to estimating interconnector de-rating factors

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Details

In the government response to the consultation on Capacity Market Supplementary Design proposals and Transitional Arrangements that was published in January, we committed to providing further details on the de-rating methodology for interconnectors in mid-February (in advance of the formal Capacity Market Rules). We outlined that DECC was considering a “hybrid” de-rating approach for interconnectors which would utilise both historical and forecasting methodologies. This methodology will enable a minimum de-rating factor to be derived from historical evidence, subject to there not being any publically reported concerns about the security of supply outlook in the connected market for the relevant Delivery Year.

Published 16 February 2015