Capacity Market could be open to unsubsidised renewables next year

How can unsubsidised renewables and hybrid projects be included in the Capacity Market (CM)? A new consultation from BEIS seeks ways to achieve that aim in time to include them in the CM auction at the end of 2019. The change would require new regulations to be laid before parliament.

In the consultation BEIS wants also responses on a suite of potential amendments. They include:

  • Contract lengths (currently one year for demand side response, three years for refurbished generation  and 15 years for new-build).
  • Derating factors for different technologies including DSR and interconnectors.
  • Sharper penalties for non-delivery, which it thinks might promote secondary trading.
  • Credit cover for non-proven DSR, which at £5,000/MW is half that of new-build. 
  • Addressing a loophole that allows batteries to enter as demand-side response in order to escape  storage derating factors .

See the call for evidence here.

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