UK capacity market in urgent need of reform

By Silvia Favasuli 14 March 2017
  • Twitter logo
  • LinkedIn logo
  • facebook logo
  • Email logo
The Langage power station. Renewables are making CCGTs less popular in the UK. (Centrica) 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 power stations. 

Such trends are unsustainable in the medium-to-long term if the government is to stick to its plan of phasing out coal-fired generation by 2025 and hitting its decarbonisation targets.

Log in or register for a free trial to continue reading this article

Already a subscriber?

If you already have a subscription, sign in to continue reading this article.

Sign in

Not a subscriber?

To access our premium content, you or your organisation must have a paid subscription. Sign up for free trial access to demo this service. Alternatively, please call +44 (0)20 3004 6203 and one of our representatives would be happy to walk you through the service.

Sign up