Capacity Market: proposal regarding locational changes of Capacity Market Units
We are seeking views on a proposed change to remove the ability for the location of a CMU to be changed after Prequalification. This change is proposed to come into force in Winter 2025 for all existing and new agreements.
The consultation states that the proposal would apply to all current and future agreements from the point of it coming into force. This means that the proposed change will apply to all existing agreements from the point it comes into force and new agreements awarded after that. It will not affect any change of location requests properly given to the Delivery Body before the changes come into force in respect of existing or previous agreements.
To give stakeholders sufficient time to review and reflect on this clarification, we are extending the consultation deadline to 28 November 2025.
The Capacity Market (CM) is regularly reviewed to ensure it remains fit for purpose, reflects changing market conditions and that the CM Rules ensure effective delivery and encourage participation to create competitive auctions.
The government has recently published a consultation on proposed changes to the Capacity Market Rules and Regulations. Alongside this, an urgent reform has been identified which requires a change to the Capacity Market Rules as soon as possible. The proposal aims to enhance the functionality of the scheme and strengthen delivery assurance. The consultation seeks views on the following change:
Remove the ability for CMUs to change their address after Prequalification: Changing the Rules to disallow any New Build Capacity Market Units (CMUs) or Demand Side Response (DSR) units from changing the location of a Generating Unit or DSR CMU Component after Prequalification. Removing the ability for New Build Projects to change their address would provide greater assurances that Applicant CMUs represent genuine New Build CMUs that can contribute to GB Security of Supply. This also better reflects the intent of the Capacity market that projects should be viable at the point of Prequalification.
The consultation is open to anyone to respond to but will be of particular interest to:
- energy industry
- consumer groups
- academia
- think tanks
- other organisations who have an interest in security of supply and decarbonisation
Read our consultation privacy notice.