Insight
GB Capacity Market suspension tightens screw on marginal plant
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The UK Government has confirmed the complete and immediate suspension of the GB power Capacity Market (CM). In response to a judgement by the European Court of Justice plans for the T-1 and T-4 auctions to be held this winter are on hold. Capacity payments to current contract holders have also stopped. It is unknown how long the CM suspension will continue, but for as long as it does a £80 million monthly revenue gap will accrue in the GB power market. This shortfall will impact wholesale power market prices as previously contracted parties, many at the margins of the wholesale market, adjust to the loss of revenue.
Table of contents
- BEIS suspend Capacity Market in light of the European Court of Justice ruling that the mechanism breaches State Aid rules
Tables and charts
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Capacity Market costs (payments to contracted parties)
What's included
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