Capacity Market

  • Press Releases

    Cornwall Insight’s reaction to the BEIS consultation on the Review of Electricity Market Arrangements

    Gareth Miller, Chief Executive at Cornwall Insight said: “Confirming the Review of Electricity Market Arrangements (REMA) opens the prospect of a complete overhaul of the electricity market in Great Britain, for the first time in over 20 years. The scope is very wide, and the perceived need for reform from...

  • Press Releases

    UK Government must spend £20bn on energy battery storage to meet 2030 renewables targets

    Modelling from Cornwall Insight on Great Britain’s (GB) Power Market out to 2030 has shown that between 2025 and 2030 the government must spend nearly a fifth (18%) of its total energy technologies investment, which includes solar, wind, nuclear and Carbon Capture and Storage (CCUS), on energy storage batteries, if...

  • Press Releases

    Degradation is a material issue for batteries competing in the Capacity Market

    According to Cornwall Insight, degradation is a key issue for batteries competing in the Capacity Market (CM). Due to degradation over time, it is currently not possible for batteries to have long-term agreements and be paid for their total capacity in the CM without risking significant fines. Current options available...

  • Press Releases

    New competition for upcoming Capacity Market auctions

    Research from Cornwall Insight’s Capacity Market Forecast highlights that the recent changes in Capacity Market (CM) rules and the technology mix will see greater competition and change in the technology entering* the T-4 auction in March 2021 compared to the previous T-4 auction. Forecasted changes to the technology mix entering...

  • Press Releases

    Flexible asset PPA capacity and competition increases

    The Power Purchase Agreement (PPA) market for flexible assets* in the last six months has grown in size and seen increased levels of competition as new offtakers and optimisers make themselves known in the market. Based on Capacity Market (CM) agreements, there is ~4.8GW of flexible capacity operational at present....

  • Press Releases

    Evaluating the T-4 Capacity Market auction

    On 6 March the EMR Delivery Body (National Grid ESO) published the provisional results of the T-4 Capacity Market (CM) auction for the delivery year 2023-24. The clearing price of the auction was £15.97/kW/year procuring 43,749MW of de-rated capacity. Lee Drummee Analyst at Cornwall Insight takes a look at the...

  • Press Releases

    Evaluating the T-3 Capacity Market auction

    On Friday 31 January the EMR Delivery Body (National Grid ESO) published the provisional results of the T-3 Capacity Market (CM) auction for the delivery year 2022-23. The clearing price was £6.44/kW/year, the auction procured 45,058.8MW of de-rated capacity. Lee Drummee Analyst at Cornwall Insight takes a look at the...

  • Press Releases

    New Balancing Mechanism entrants expected

    National Grid ESO’s project Wider Access – a project to increase accessibility to the Balancing Mechanism (BM) – is scheduled to go-live on 11 December 2019. Cornwall Insight has reviewed the recent activity of aggregated units and batteries in the BM and what impact this project will have on new...

  • Press Releases

    Collecting Capacity Market payments could prove tricky

    On 24 October the European Commission (EC) announced its decision to approve the GB Capacity Market (CM). The standstill payments of ~£1bn are due to be issued on 14 November with a payment deadline of 21 November. However, the process of collecting and distributing deferred capacity payments could prove tricky....

  • Press Releases

    Cornwall Insight responds to the European Commission approving the British Capacity Market Scheme

    Commenting on the European Commission’s announcement Tom Edwards Senior Modeller at Cornwall Insight, said:  “A commission investigation has found Great Britain’s (GB’s) Capacity Market to be in line with EU State Aid rules, and necessary to guarantee the security of supply. It also did not find any evidence that the...

  • Press Releases

    Capacity Market in oversupply but predicted to balance out by mid-2020s

    Earlier this month, Secretary of State for Business, Energy and Industrial Strategy Greg Clark wrote to the Delivery Body to update the target procurement volumes to 2.7GW, from the 4.6GW initially recommended in 2018, for the replacement T-1 2019-20 capacity auction that is due to be held in June. This...

  • Press Releases

    Capacity Market renewable ratings clarity but gap in government policy remains

    National Grid ESO recently published its consultation* on the new de-rating factor methodology to be used for renewables participating in the Capacity Market (CM). The document forms a vital part of the five-year review of the Capacity Market. The new proposal is to use an Equivalent Firm Capacity (EFC) approach....