Consultation launched on Capacity Market changes

A consultation has been launched on planned reforms to the Capacity Market.

The Government said the measures would align the scheme with its decarbonisation goals and improve the functionality of the scheme.

It is seeking views on proposals including implementing targeted price-related reforms by introducing a second, higher, price cap into the auction. The move could secure new build dispatchable enduring capacity that can generate power over prolonged periods of tight supply.

The proposals also include implementing additional delivery assurance processes in relation to consumer-led flexibility assets entering the Capacity Market.

The Government is also seeking views on enabling the participation of ‘hydrogen to power’ in the auctions and technical changes to setting interconnector de-rating factors.