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Policy & Regulation

UK presses on with capacity auctions

The UK is planning to hold its next capacity auction for power generators in January 2020 in the hope that the suspension imposed by the EU Court of Justice will be lifted by then The UK is planning to hold its next capacity auction for power generators in January 2020 in the hope that the suspension imposed by the EU Court of Justice will be lifted by then.
By Andreas Walstad 15 August 2019 Europe & Russia / Policy & Regulation 0 34489
The Peterhead gas-fired power plant. (Shell)

The key issue: The UK is pressing on with new capacity auctions to subsidise power generators, but payments cannot be awarded before a suspension imposed by the EU Court of Justice is lifted.

Interfax analysis: The UK government is hopeful it will have obtained new approval for its capacity payment scheme under EU state aid laws before its next auction, which is planned for January next year. The profitability of gas-fired power plants in the UK could be seriously dented unless the legal issues surrounding...