Capacity Market: proposals for future improvements
We're seeking views on changes to the Capacity Market’s design following the European Commission’s 2019 decision granting State aid approval for the scheme.
The Commission’s 2019 State aid decision notes that the UK government has committed to implementing a number of improvements to the design of the Capacity Market (CM) to reflect recent market and regulatory developments, including those identified through our recent 5-year-review of the effectiveness of the CM.
This consultation seeks views on proposals to implement 5 of the 6 commitments referenced in the decision, as well as a review of the exclusion from the CM of plants with long-term STOR contracts and several other minor improvements.
We intend to publish a separate call for evidence on proposals to implement the sixth State aid commitment on enabling the direct participation of foreign capacity in due course.