Record low clearing prices in the T-1 Capacity Market auction have rendered the mechanism unfit for purpose, while meeting its minimum requirements could seem “fatally onerous” for battery storage developers.
This week’s T-1 Capacity Market (CM) auction cleared at a record low clearing price of just £0.77/kW, with just one new build battery storage project winning a contract.
Prime Minister Theresa May’s announcement that the government will indeed legislate for a net zero economy by 2050, albeit with certain caveats, has been lauded by the power sector.
The UK’s Treasury Committee has launched an inquiry into HM Treasury’s role in the decarbonisation of the country’s economy, just a day after reports suggested it was ready to “fiddle” with binding climate targets.
The UK government is prepared to use historic over-performance in emissions reductions to meet future targets, reports have suggested, in a move which is likely to attract considerable criticism.
The government has formally approved renewables’ participation in future Capacity Market auctions, and unsubsidised projects could compete as early as next year.
A war of words has erupted between Citizens Advice and the UK’s energy networks companies over calls for consumers to be compensated for what the charity has described as years of overcharging.
Energy regulator Ofgem has pushed ahead with plans to slash the cost of equity for networks under RIIO-2, confirming a methodology which, if applied today, would cut the baseline return on equity to 4.3%.
