The UK Government today published the parameters for the next Capacity Market auction to ensure the UK has sufficient capacity to meet electricity demand for 2019/20. The parameters outline the criteria for energy suppliers to apply and partake in the Government’s second capacity market auction, expected to take place in December 2015.
This year interconnectors are eligible to participate, increasing the competitive pressure on the auction clearing price and helping to ensure that security of supply is delivered at least cost to consumers.
Interconnectors link electricity transmission systems across borders so that cross-border trade in electricity can take place. Interconnection can lower bills, improve energy security and support the integration of renewable energy sources.
Parameters for the Transitional Arrangements auction, for delivery of capacity in 2016/17, to encourage the growth of the Demand Side Response sector are also published.
Energy Minister Andrea Leadsom said: “We have a plan to power the country so that British people and businesses can be confident that the lights will stay on, not just this winter but in the years and decades ahead, at the lowest possible cost to the hardworking people paying the bills.
“We’re building a new generation of clean, secure and affordable energy supplies, and are doing all that we can to help innovative technology to thrive.”