Question

To ask the Secretary of State for Energy and Climate Change, what level of financial return the Government expects from diesel generators who will benefit from payments through the capacity market.

The Government itself will not make any financial return from generators participating in the capacity market. As with all types of capacity, diesel generators that have been successful in the second capacity market will receive a payment of £18/kw in return for providing electricity at short notice when the system requires it; and may have other sources of revenue outside the capacity market. Diesel engines are a flexible form of capacity that run for short periods to meet peaks in demand, and can reduce the consumer bill impacts by lowering the cost of securing the necessary capacity.