LCCC and ESC welcome the publication of the Government’s response to its consultations on future improvements, emissions limits and coronavirus easements. It is important at this time that where possible flexibility can be provided to Capacity Providers in their duties under the Capacity Market (CM).
We support the Government decisions on future improvements to the CM scheme. In particular we agree with the decisions to promote more flexibility in the CM scheme via:
- Reducing the Minimum Capacity Threshold to participate in the CM from 2MW to 1MW as this supports the wider Smart Flexibility agenda
- The exclusion of standalone storage units from entering the CM under a DSR de-rating in future auctions
- ESC will continue to work with the Government to reduce the scope for fraud and error in the CM scheme.