Today, the European Commission (EC) ruled to approve UK’s Capacity Market scheme following the investigation into its State Aid compliance.
“Notably, the Commission did not find any evidence that the scheme would put demand response operators or any other capacity providers at a disadvantage with respect to their participation in the scheme”, reads the statement issued by the EC.
Eamonn Bell, Head of Market Strategy at GridBeyond, commented:
“The UK can now reinstate Capacity Market payments and can officially confirm the three upcoming Auctions in Q1-2020.
“This is good news for the Demand Side Response customers who will be helping to secure the electricity system against major outages as our energy mix pivots away from fossil fuel plants and towards more renewable generation.”
The Capacity Market was suspended last November following the ruling from the EU General Court ordering the European Commission to investigate the legality of the scheme under the State Aid rules.
The case was launched last year when the mechanism of the Capacity Market was challenged as giving an unfair advantage to fossil fuel power generators over demand side response (DSR) technologies.