To obtain CM revenue for our customers, we take their assets into capacity auctions where the price is set. Suppliers who successfully participate in the auction benefit from a capacity agreement that confirms their commitment to the capacity market and their payments. Meanwhile, the government is informing producers that they should continue to comply with their capacity market contracts, although the contracts do not have the force of law at the moment, as a source in the room said at a meeting of the Energy Regulatory Agency ofGem last week. Another is National Grid`s Enhanced Frequency Response auction, during which 0.5 GW batteries were allocated for power frequency management. These batteries can also have secure capacity market contracts, so they can “stack” different sources of revenue. If an applicant is successful at the auction, he or she obtains a capacity agreement specifying specific requirements that must be met before the start of a relevant delivery year, as well as capacity obligations. This section describes the different requirements and obligations that must be met. “It`s much more important than just a procedural issue, as Greg Clark said last week. The generators will be this winter without their expected capacity payments.
This decision also implies considerable uncertainty as to how the capacity market will operate in the future. As a result, some will consider closing prematurely or freezing planned projects. British regulations only allow cables that provide electricity from neighbouring countries, not foreign power plants themselves. In addition, it limits RSD suppliers to one-year contracts – not 15-year contracts available to new power plants – while the Polish market offers DSR contracts for up to five years. Contracts will be awarded to the most advantageous bidder in a series of auctions. The amount of capacity purchased at the auction is set in advance by the government on the basis of the advice of the National Grid Network Manager. The UK Capacity Market, the government`s main policy to “stop the lights,” was declared illegal following a surprise EU court ruling on 15 November. Since the introduction of the capacity market in 2014, these securities have dried up and public concern about power outages has eased. Small operators are faced with a slightly different calculation.
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