What is the Capacity Market?
Under the capacity market, generators and certain consumers receive a payment for delivering an agreed amount of power onto the grid, or reducing their demand from the grid, when there is a ‘System Stress Event’.
Contracts for providing this service, are awarded in annual auctions. There are two auctions per year: one for delivery about a year ahead (called the T-1 auction), and; one for delivery about four years ahead (called the T-4 auction).
Participation in the Capacity Market
The capacity market revenues can be layered on top of those from balancing services, and is controlled via the very same platform.
The capacity market is an initiative from BEIS, which is operated by National Grid, as a fail-safe to ensure Nationwide blackouts cannot occur. Capacity events typically happen once every ten years, however tests are required 3 times each year to ensure the capacity is available if needed.
Layer your revenues
Unlike many National Grid programmes, the capacity market can be layered on top of balancing services revenues.
Minimal response required
Capacity market participation only requires 3 tests per year and an average of 1 actual system stress event every 10 years.
Always in safe hands
With GridBeyond’s platform already in place for balancing services, your business doesn’t need to undergo any further installations to participate. Just a simple test, which we will handle with your cooperation.
The GridBeyond Guide to the Capacity Market.
Learn how the capacity market works, why it exists, how to meet the qualification criteria and the steps to participation.
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