The Capacity Market is up for its 5-year review and the Department for Business, Energy and Industrial Strategy (BEIS) recently closed their call for evidence which kicked off that process. In August, we wrote a blog outlining the proposals in the call for evidence and highlighting some key issues and opportunities for the renewable and storage sectors.
We have now sent our response to BEIS (which you can download above) in which we highlighted the importance of evolving the Capacity Market in tandem with the decentralisation and decarbonisation of the energy system. Allowing renewables and storage to participate is a crucial part of maintaining security of supply, but there are careful considerations to be made that ensure the value of those technologies is recognised to enable them to compete fairly in the market.
This is the government’s first communication ahead of a longer review, so we intend to remain closely engaged with the process as it continues. If you have questions or comments, please do get in touch.