Capacity Market: Government response to consultations on Future Improvements, Emissions Limits, & Coronavirus Easements

BEIS has published the Government’s response to three Capacity Market (CM) consultations: Future Improvements, Emission Limits, and Coronavirus Easements. All three responses are contained in one document.

Electricity Settlements Company (ESC) confirm it is important at this time that where possible flexibility can be provided to Capacity Providers in their duties under the Capacity Market (CM).

ESC supports the Government decisions on future improvements to the CM scheme. In particular, they agree with the decisions to promote more flexibility in the CM scheme via:

  • Reduce the Minimum Capacity Threshold to participate in the CM from 2MW to 1MW as this supports the wider Smart Flexibility agenda
  • The exclusion of standalone storage units from entering the CM under a DSR de-rating in future auctions
  • ESC will continue to work with the Government to reduce the scope for fraud and error in the CM scheme.