Open letter asks which new technologies would be eligible to participate in Capacity Market auctions

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An open letter by Department for Business, Energy & Industrial Strategy (BEIS) seeks to identify emerging generating technologies that may be eligible to participate in capacity market auctions.

The Capacity Market seeks to ensure security of electricity supply by providing a payment for reliable sources of capacity, alongside their electricity revenues, to ensure they deliver energy when needed.

This is set to encourage the investment needed to replace older power stations and provide backup for more intermittent and inflexible low carbon generation sources.

Rule 2.4 of the Capacity Market Rules requires the Secretary of State to consult annually on whether any new generating technologies, not already identified as a Generating Technology Class, which are capable of contributing to security of supply have emerged and should be eligible to participate in future Capacity Market auctions.

Now BEIS consulting with interested parties as to whether any new generating technologies have emerged since they consulted last year which could participate in future Capacity Market auctions and the open letter accordingly seeks views on whether such new generating technologies exist.

Types of information sought as part of this open letter include:

  • a brief description of the technology
  • does the technology already exist, has it been deployed commercially at scale?
  • is there any evidence to show that the technology is commercially viable, for example a proven business model?
  • is the technology able to contribute to security of supply at periods of peak electricity demand e.g. by generating electricity or reducing electricity demand?
  • what evidence is there relating to the reliability and availability of this technology at periods of peak electricity demand?
  • is the technology significantly different from existing Capacity Market generating technology classes to warrant its own class?
  • what is the fuel source or source of energy for the technology? If fuelled, is it a fossil fuel?
  • is the output of this technology fully controllable or is it dependent on an intermittent energy source?
  • are there any limitations on the length of time the technology can operate continuously at full capacity during peak periods, for example, due to limitations on fuel / energy source or running hours? If so, what are the typical duration limits?
  • contact details (for any follow up questions)

This consultation closes at

More information about this consultation and how to take part is available on the UK Government website.