The government has confirmed changes to the Capacity Market which are designed to remove barriers for demand side response (DSR) and energy storage, making it easier for clean technologies to compete.
The rules and regulations of the Capacity Market (CM) may be changed the government has said, due to the impact of COVID-19 on holders of capacity agreements.
Last week’s T-4 Capacity Market clearing price jumped to £15.97/kW/y as over 100MW of storage was awarded contracts.
Ofgem has said that “more thought” is needed on how demand-side response (DSR) units can incorporate limited duration technologies, such as storage, when bidding for Capacity Market contracts.
The latest T-1 Capacity Market (CM) auction has cleared at £1.00/kW/y, with just two storage assets winning contracts, prompting renewed questions over the benefits of running such auctions.
A new report released by Aurora Energy Research states that in order to meet the government's 40GW by 2030 offshore wind goal, almost £50 billion worth of investment will be needed.
A number of battery storage assets successfully landed capacity agreements in last week’s T-3 Capacity Market auction by listing as demand side response (DSR) assets.
Capacity providers have received £1 billion in deferred Capacity Market (CM) payments, the Electricity Settlements Company (ESC) has said.
Demand side response has witnessed strong growth in Capacity Market pre-qualification results for next year’s auctions, which have also recorded the first ever inclusion of a solar farm.