This statement is to inform Members of the publication of a consultation relating to the capacity market titled “Consultation on proposal regarding locational changes of Capacity Market Units”.
The consultation supports our objectives of delivering clean power by 2030 and accelerating progress towards net zero, while ensuring security of supply.
Since its introduction in 2014, the CM has secured reliable capacity for when there is greater demand for electricity in Great Britain. This capacity is acquired through competitive annual auctions held four years and one year ahead of their respective delivery years. The Government regularly amend the framework underpinning the capacity market before auction cycles to ensure that it is fit for purpose and cost-effective, and that it meets broader strategic objectives such as clean power by 2030.
The consultation we are publishing today includes a proposal intended to maintain electricity security and the scheme’s integrity, and to strengthen delivery assurance.
We are seeking views on a change to the CM that would achieve the following aim:
Removing the rule that allows for notification of a change of address in the capacity market to prevent new-build CMUs from changing address between pre-qualification and delivery.
Remove the ability for CMUs to change their address after pre-qualification.
The consultation proposes the removal of the change of address provisions from the capacity market rules on the basis that they are no longer considered necessary. This is because it is expected that applicants will have certainty regarding project location prior to submitting a capacity market application and should be confident in their ability to deliver at the specified site.
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