The European Commission has today opened an in-depth investigation into the Capacity Market’s compliance with EU State aid rules, sparking what could remain a lengthy process towards the scheme’s reinstatement.
Energy and clean growth minister Claire Perry has attempted to downplay the impact of the ‘standstill’ imposed on the UK’s Capacity Market, courting accusations of dishonesty from the company behind the legal challenge that resulted in the suspension of the scheme.
There has been a substantial drop in the levels of new battery capacity being entered into consideration for the Capacity Market, according to the prequalification results of the next auctions.
The government has failed to rule out that it may have to recover capacity market payments already made to contract holders as a result of today’s landmark ruling by the European Court of Justice.
European renewables companies have become the latest to question the ambition of the European Commission’s clean energy package, launched last November.