Capacity Market prequalification and auction process
Capacity Market prequalification and auction process

The following Energy guidance note provides comprehensive and up to date legal information covering:

  • Capacity Market prequalification and auction process
  • The Capacity Market
  • Eligibility and prequalification
  • Capacity Market auction process

Note: on 15 November 2018 payments under the Capacity Market mechanism and future Capacity Market support were suspended. This came as a result of the General Court issuing its judgment in Case T-793/14 Tempus Energy Ltd and Tempus Energy Technology Ltd v Commission (Tempus Judgment), annulling the Commission’s decision of 23 July 2014 which found that the aid scheme establishing a capacity market in the UK was compatible with the EU rules on State aid. For detailed analysis and links to further resources on this, see the final section of Practice Note: Electricity Market Reform (EMR)—Capacity Market—Suspension of the Capacity Market following the Tempus State aid judgment (15 November 2018). On 24 October 2019, the Commission re-confirmed its original July 2014 decision to grant State aid approval for the GB Capacity Market, enabling it to be restored and payments that have been suspended since November 2018 to be made. As a result of this development, this Practice Note is currently under review.

The Capacity Market

The Capacity Market (CM) is one aspect of the government’s Electricity Market Reform (EMR) programme. It is a legislative mechanism which aims to encourage the provision of reliable electricity capacity, to avoid shortfalls in available electricity. This Practice Note focuses on the processes through which CM support is awarded:

  1. for a detailed introduction