Government announces Capacity Market auction parameters

8 Jul 2016 07:05 AM

The Government has recently set out how much electricity capacity it intends to buy in the forthcoming Capacity Market auctions.

The Capacity Market is our main tool for ensuring that electricity remains available during times of high demand, such as dark winter evenings. It enables us to buy capacity in advance for use from 2017/18. It is the most cost effective way to guarantee that we have the full range of electricity infrastructure available to cope with unexpected peaks in demand.

Earlier this year, a package of reforms to the Capacity Market was confirmed, ensuring that it continues to deliver energy security for families and businesses.

This winter two Capacity Market auctions and the second Transitional Arrangements auction (which supports the Capacity Market) will take place, securing our electricity supply for the winters of 2020/21 and 2017/18. The auction parameters set out the amount of capacity we are looking to secure in these auctions.

Energy and Climate Change Secretary Amber Rudd said:

“We are taking the action needed to tackle the legacy of under-investment in our energy infrastructure, build a system fit for the 21st century and ensure our country’s long-term energy security.

“As part of this, the Capacity Market drives down costs and ensures we can meet our energy demand at the lowest possible price for bill payers.”

The Government intends to buy:

Notes to editors