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Posted 1 year ago | 3 minute read

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UK outlines electricity capacity market reforms

The government has unveiled new proposals aimed at avoiding electricity blackouts and incentivising greater investment in low carbon technologies.

In a consultation, published on 9 January, the government has set out plans to introduce new contracts to incentivise cleaner technologies to take part in the Capacity Market, and also set new timelines for oil and gas producers to reduce emissions for newly built plants from 2034.

The Capacity Market aims to ensure there is reliable electricity supply to meet peaks in demand, safeguarding against the possibility of blackouts if intermittent sources such as those dependent on weather, are not generating enough.

Launching the consultation minister for energy and climate Graham Stuart said security of energy supply has become a more urgent political issue in light of threats to long-term gas supplies across Europe following Russia’s invasion of Ukraine. “As we move towards cleaner and cheaper energy, it is essential that the UK provides secure and affordable energy for all […] the plans set out today will deliver this reliable energy and ensure the scheme that sits at the heart of Britain’s energy security is fit for the future”.

The proposals set out include:

Responses are invited until 3 March 2023.


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