CM

  • Commercial and market outlook

    Capacity, reform, and unlawful strategies: 5 things that happened yesterday

    Capacity, reform, and unlawful strategies: yesterday was a busy day for energy geekery. The developments encapsulate the shorter and longer term challenges and uncertainties present in the energy market presently: Read the full article here

  • Low carbon generation

    Surprising decision by the Secretary of State for BEIS regarding the Capacity Market auction

    An interesting and surprising decision by the Secretary of State for BEIS regarding the Capacity Market auction parameters for the upcoming T-1 auction being held on 15 February. The procurement target has been lifted from 4.5GW (as set in the draft parameters in July 21) to 5.361GW. This is notably...

  • Low carbon generation

    Here we go again: Capacity Market auctions, what can we expect?

    After recently issuing our latest Capacity Market Forecast, we wanted to highlight some of the key trends to look out for regarding the upcoming Capacity Market (CM) auctions being held in February 2022. This round of CM auctions begins with the T-1 for Delivery Year 2022-23 on 15 February followed...

  • Energy storage and flexibility

    Batteries, the Capacity Market and the challenge of Extended Performance – Part 2

    In a previous blog published on Monday 25 October, we discussed the issue of Extended Performance Tests within the GB Capacity Market (CM). In summary, due to degradation overtime it is currently not possible for batteries to be paid for their full capacity in the CM without risking significant fines....

  • Regulation and policy

    Electricity transmission charging reform – overtaken by changing priorities?

    Charging for the transmission network is never out of the development process for long. From major reviews, such as that initiated under Project Transmit in 2010, to significant reforms such as removing the triad benefit from distributed generation in 2018, and a host of smaller developments, change seems the only...

  • Energy storage and flexibility

    Glory Days – T-1 auction clears at £45/kW

    To say the T-1 Capacity Market (CM) auction clearing at £45/kW per year was a surprise feels like an understatement. It looks like a major windfall for successful participants in the auction –  many are asking just what happened? Easy money Until February, it looked like prices would clear at...

  • Home supply and services

    COVID-19-driven changes to electricity Third Party Charges

    The impact of COVID-19 on the energy sector has been a hot topic for the last few months. As we progress further into the UK’s lockdown period we are now beginning to piece together the wider picture of effects across energy Third Party Charges (TPCs). These impacts are expected to...

  • Low carbon generation

    Lessons from a lock down

    We are all facing a new, simpler existence. For my part, I have been self-isolated for three weeks. My little flat in central London has become almost my entire existence, my days have settled into a simple routine, and I've had plenty of time to reflect. Although COVID-19 presents an...

  • Net zero corporates and ESG

    Editor’s Pick Ireland | Clean Energy Package: what does it really mean?

    The Capacity Market Code removes or restricts payments to fossil fuel generators and allows cross border participation in Capacity markets, arising from the Clean Energy Package (CEP). We look at some of the other potential changes in the way EirGrid and SONI operate our energy system arising from the implementation of the...

  • Low carbon generation

    Editor’s Pick | The green shoots of the Capacity Market auctions

    A pivotal year for the Capacity Market (CM) draws to a close, with the first long-term auctions for capacity since 2018. But for once the CM is the least interesting thing happening in the market, and the scheme itself seems out of step with the net zero future. In this Energy...

  • Energy storage and flexibility

    Storage story: a regulatory run-down

    While electricity storage has long been recognised as a crucial solution to mitigating the drawbacks of some types of renewable generation, it has taken some time for the regulatory and charging framework to catch up. It has taken years, but recent progress on the licensing and exemptions from some final...

  • Energy storage and flexibility

    I can change – what’s wrong with the Capacity Market (and what we need to do to fix it)

    The return of the Capacity Market (CM) after its legal hiatus in November 2019 was a relief to many owners and developers of generating capacity in GB. But I think it’s time to ask whether it’s really the best tool to reach net zero at lowest costs to consumers. The...

  • Commercial and market outlook

    Editor’s Pick | Lower procurement targets recommended for 2020 CM

    National Grid Electricity System Operator (ESO) has issued its updated recommended procurement targets for the upcoming Capacity Market auctions. For all three auctions, the recommended capacity level was lower than the target previously confirmed by the Secretary of State (SoS). A series of reports, published on 9 January, set out...

  • Low carbon generation

    Guess who’s back? The Capacity Market and what happens next

    On 24 October, the European Commission (EC) announced its decision to approve the GB Capacity Market (CM) after an investigation which lasted several months. While this is a positive outcome for holders of capacity agreements, the ~£1bn ‘back-payment’ bill comes at a difficult time for suppliers, who are facing up...

  • Commercial and market outlook

    European judicial ruling leads to Capacity Market “standstill period”, but replacement auction likely

    A decision on a legal challenge confirmed earlier today (15 November) has resulted in BEIS immediately suspending the Capacity Market (CM). This means cessation to payments to existing CM agreement holders and no CM auctions for future agreements early next year. The ruling is the result of a legal challenge...