DECC reveals major energy capacity market reforms

摘要

DECC is planning major changes to the capacity market to drive up investment and boost near-term energy security. Many of the changes are set out in DECC's 1 March response to its October consultation on stronger incentives and penalties for non-delivery on contracts and other refinements. Several more, notably bringing forward the start date of the capacity market by a year, are contained in another consultation launched on the same day. In its response, DECC recognises that risks from tightening capacity margins through a combination of accelerated closure of unprofitable coal-fired plant and "years of under-investment" in new gas-fired plant had worsened since 2014.