Q&As

Capacity Market Rule 3.7.3 states that ‘Each Applicant for a New Build CMU that is or will be a Transmission CMU must: (i) confirm that one or more Grid Connection Agreements have been entered into which secure Transmission Entry Capacity for the relevant Delivery Years for the Generating Units...’. In order to qualify as ‘secure’ Transmission Entry Capacity, does this require a firm offer of a Grid Connection Agreement?

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Published on LexisPSL on 07/09/2020

The following Energy Q&A provides comprehensive and up to date legal information covering:

  • Capacity Market Rule 3.7.3 states that ‘Each Applicant for a New Build CMU that is or will be a Transmission CMU must: (i) confirm that one or more Grid Connection Agreements have been entered into which secure Transmission Entry Capacity for the relevant Delivery Years for the Generating Units...’. In order to qualify as ‘secure’ Transmission Entry Capacity, does this require a firm offer of a Grid Connection Agreement?
  • The Capacity Market Rules
  • CM Rule 3.7.3

The Capacity Market Rules

The Capacity Market (CM) was implemented pursuant to powers in the Energy Act 2013 (EA 2013) to ensure there is sufficient commitment/investment by the private sector in providing reliable electricity capacity, so as to ensure ongoing sufficient electricity supplies in Great Britain.

The primary implementing legislation of the CM is the Electricity Capacity Regulations 2014 (Capacity Regulations), SI 2014/2043 (as amended).

However, in addition to the Capacity Regulations, EA 2013, s 34:

  1. provides government (by way of the Secretary of State) with the power to make and amend ‘Capacity Market Rules’ (CM Rules) to supplement provisions

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