Capacity Market 2023: Phase 2 proposals and 10 year review
- From:
- Department for Energy Security and Net Zero
- Published
- 16 October 2023
- Last updated
-
2215JulyOctober 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
Capacity Market Phase 2 Consultation: government response update (15 October 2024)
PDF, 236 KB, 18 pages
Detail of outcome
ThisThe government response 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.
ResponseGovernment toresponse thisupdate: consultation15 October 2024
GivenFollowing the announcementJuly of2024 thePhase General2 Election,government Parliamentaryresponse, timethis hasupdate beenoutlines highlythe constrainednext insteps thefor leadthose uppolicies tofrom the 2024Phase pre-qualification2 window.consultation We have therefore prioritised those technical measures that couldwere benot implementedprogressed viaprior rulesto amendments in the short period before the commencement of the 2024 pre-qualificationprequalification window.
We will now seek to lay legislation in Parliament to amend the Capacity Market rulesRules and Electricity Capacity Regulations in order to implement these technicalproposals measures,by so that they are in place for the 20242025 pre-qualificationprequalification window.
PoliciesThis notupdate beingshould progressedbe priorread toalongside the 2024government pre-qualificationresponse windowto willthe nowPhase be2 considered on a longer timescale.Consultation.
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
Summary
We're seeking views on the Electricity Capacity Market.
This consultation ran from
to
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.
Documents
Capacity Market 2023: Phase 2 proposals and 10 year review - consultation
PDF, 564 KB, 68 pages
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Updates to this page
Last updated
-
Published an update to the government response for the Capacity Market: Phase 2 proposals.
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Public feedback and government response added.
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First published.