Policy & Regulation

UK capacity market in urgent need of reform

The UK’s capacity auction mechanism is putting the country at risk of having a capacity gap in 2025. CCGT seems the best solution to the problem The UK’s capacity auction mechanism is putting the country at risk of having a capacity gap in 2025. CCGT seems the best solution to the problem.
By Silvia Favasuli 14 March 2017 0 25027
The Langage power station. Renewables are making CCGTs less popular in the UK. (Centrica)

The UK’s capacity market needs an urgent overhaul if it is to stimulate construction of new large-scale gas-to-power plants and bolster power supply margins that are expected tighten midway through the next decade, industry sources have told Interfax Natural Gas Daily.

Introduced in 2014 to boost power supply security during periods of peak demand, the UK capacity market has had two consequences that few expected: expanding the number of small, environmentally unfriendly and inefficient diesel power plants; and extending the lives of the country’s remaining coal-fired...