Government decides against Capacity Market change

The government has decided not to press ahead with a proposed change to the Capacity Market.

As part of a series of changes ahead of pre-qualification for the 2027 auction the government had been looking at introducing a second, higher, price cap.

The change could have provided the ability to secure new build dispatchable enduring capacity that can generate power over prolonged periods of tight supply.

The government consulted on the potential Multiple Price Capacity Market option but said after careful consideration it had decided not to proceed.

“We recognise the important role that dispatchable enduring capacity plays in supporting a reliable electricity system, particularly during longer periods of tight supply,” it said.

“We will continue to work with industry to better understand and tackle barriers these technologies face and consider where further action may help ensure that such capacity can come forward when needed.”