~~Open~~Consultation ~~consultation~~outcome

Capacity Market 2023: Phase 2 proposals and 10 year review

From:: Department for Energy Security and Net Zero
Published: 16 October 2023
Last updated: 22 July 2024 — See all updates

Applies to England, Scotland and Wales

Read the full outcome

Capacity Market Phase 2 Consultation and Rule amendments to support auction liquidity: government response

PDF, 515 KB, 57 pages

Detail of outcome

This document is in 2 parts.

The first part is a response to this consultation (the ‘Phase 2’ consultation).

The second part is a response to the consultation on rule amendments to support auction liquidity.

Response to this consultation

Given the announcement of the General Election, Parliamentary time has been highly constrained in the lead up to the 2024 pre-qualification window. We have therefore prioritised those technical measures that could be implemented via rules amendments in the short period before the commencement of the 2024 pre-qualification window.

We will now seek to lay legislation in Parliament to amend the Capacity Market rules in order to implement these technical measures, so that they are in place for the 2024 pre-qualification window.

Policies not being progressed prior to the 2024 pre-qualification window will now be considered on a longer timescale.

We intend to publish a response to the Review of the Capacity Market (Part B of this consultation) later this year. We will update this page when it’s published.

Detail of feedback received

We received 41 responses to this consultation from a wide variety of respondents, including:

industry

commercial representation

delivery partners

The proposals were broadly supportive, while others provided useful feedback which the government has reflected on.

Original consultation

Consultation description

The consultation is in 2 parts:

Part A: Strengthening security of supply and alignment with net zero

This part of the consultation follows the January 2023 consultation and forms Phase 2 of reforms to the Capacity Market, building on the previous consultation and further engagement with stakeholders and industry.

The main policy proposals broadly fall into 2 categories:

strengthening security of supply
accelerating investment in low carbon technologies

The proposed reforms set out in Part A of this consultation represent the next step in the evolution of the Capacity Market and have been considered in light of the Review of Electricity Market Arrangements (REMA) programme.

Part B: Review of the Capacity Market

The Capacity Market Rules and Regulations contain a requirement to carry out a review every 5 years and publish a report. The next full review of the market (the 10-year review) is due to be published by Summer 2024.

This part of the consultation is a call for evidence to help inform this review.

Respondents can choose to answer one or both parts of the consultation.

See our consultation privacy notice.

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