MENUMENU
  • Home
  • Free Subscription
  • Latest digital editions
  • Market reports
  • Events
        • The EV Event
          • Register
        • The Energyst Event
          • Photos
          • 2018 presentations
          • Videos
        • Battery storage event
          • 2018 Photos
          • 2018 presentations
          • Photos
        • DSR Event
          • Photos
          • 2018 presentations
          • 2017 presentations
  • Advertise
    • Our Publications
  • About Energyst Media
    • Contact Us

theenergyst.com

  • Policy & Legislation
  • Energy Procurement
  • DSR
  • Energy Management
  • Renewable Energy
  • Water Efficiency
  • February 21, 2019
You are here: Home / DSR / Government seeks views on bringing renewables into 2019/20 capacity auction

Government seeks views on bringing renewables into 2019/20 capacity auction

August 8, 2018 By Brendan Coyne Leave a Comment

Government wants views on how to bring unsubsidised renewables and hybrid projects into the Capacity Market (CM).

If workable solutions can be found, it aims to lay enabling legislation ahead of the auctions in winter 2019/20.

The department for business, energy and industrial strategy (Beis) said it thinks the CM is working broadly as intended, but seeks views on a wide range of potential amendments.

It wants to know whether contract lengths (one year for DSR, three years for refurbished generation plant and 15-years for new build) are suitable and whether existing penalty regimes for non-delivery are strong enough.

Credit cover for non-proven DSR is £5,000/MW, half that required for new build capacity. Some market participants suggest that gives DSR an advantage. Beis wants to know if that is the case, but points out that DSR can only get a one-year capacity agreement.

The implication is that it may offer longer agreements for DSR were it to increase credit cover requirements.

The department thinks steeper penalties might also sharpen signals for secondary trading.

Beis also seeks views on derating factors for different technologies – including DSR and interconnectors. Some market participants think new build interconnectors are at an advantage in the CM due to the cap and floor regime, which guarantees revenues.

It also wants to stop batteries pretending to be demand-side response in order to escape the storage derating factors applied ahead of last year’s auction.

Any thoughts on how overseas capacity could participate directly in the auctions are also sought.

As well, Beis would like views on whether there are too many cooks involved in overseeing and administrating the CM, and how risk of fraud can be reduced.

See the call for evidence here.

Related stories:

Aurora: Bring unsubsidised renewables into Capacity Market

Ofgem makes Capacity Market changes to reduce test burden and boost secondary trading

Battery storage cut down to size as gigawatts qualifies for Capacity Market

Liquid air energy storage firm plans big capacity market bid

Ofgem outlines proposed changes to capacity market rules

Click here to see if you qualify for a free subscription to the print edition of The Energyst, or to renew.

Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.

Share this article:

  • Tweet
  • Email
  • Print
  • More
  • Pocket
  • Share on Tumblr

Filed Under: DSR

About The Author

Contributing editor at Energyst Media, Brendan is keenly interested in demand-side response, battery storage and smart grid technologies.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

2019 Energy outlook podcast

Top Posts & Pages

  • Capacity Market: Ofgem rejects plan to collect payments during suspension
  • London calling for £500m energy contract
  • Centrica eyes gigawatts of household solar and storage
  • Utilitywise calls in administrators
  • Ashford Council sees £7m income from 9MW solar farm
  • WPD tenders for 93MW of demand-side response
  • Good Energy steps up b2b battery storage push
  • £320m heat network fund open for applications
  • Solar fund plans £20m commercial rooftop PV spree
  • Think tank calls for low carbon gas obligation

RECENT COMMENTS

  • Andrew Warren on Capacity Market: Ofgem rejects plan to collect payments during suspension
  • Anonymous on Capacity Market: Ofgem rejects plan to collect payments during suspension
  • Andrew Warren on Capacity Market: Ofgem rejects plan to collect payments during suspension
  • Andrew Warren on Think tank calls for low carbon gas obligation
  • Ian Byrne on Councils and transport firms given £44m for electric buses
  • Ian Johnston, CEO, Engenie on Grid operators move to cut EV charging point bottlenecks
  • John Charles Brown on You only live twice: battery storage from EVs
Tweets by @EnergystMedia

theenergyst® | Copyright © 2019 Energyst Media Ltd

Website users agree to abide by our Terms & Conditions and Cookie Policy

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.