Electricity Generation: Competition

(asked on 24th November 2015) - View Source

Question

To ask the Secretary of State for Energy and Climate Change, what steps she is taking to ensure that the Capacity Market does not favour any class of generators.


Answered by
Andrea Leadsom Portrait
Andrea Leadsom
This question was answered on 30th November 2015

The Capacity Market is technology neutral, i.e. it does not seek to procure specific volumes of capacity from different types of technology. Before the start of pre-qualification for the auction, National Grid discounts the capacity available from each technology according to its historic reliability. These steps ensure that all types of eligible capacity are able to participate on an equal basis. The principle of technology neutrality allows the market to identify which technology type is cost efficient in delivering security of supply.


We are satisfied with the wide range of different technologies that have prequalified for the next Capacity Market auction, which will take place next month.


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