The first UK energy market capacity auction will be held in December this year to help ensure that there are no power black-outs as a result of a possible ‘power crunch’.
UK government’s reforms to stimulate low carbon energy investment and keep the lights on have now passed into law. As a result;
The government’s delivery partners for the reformed market – National Grid, the Low Carbon Contracts Company, and the Electricity Settlements Company – have been given powers to go ahead and implement the reforms
The first Capacity Market auction will be held in December 2014 for the winter of 2018/19, helping to ensure the lights don’t go out when demand for electricity is high
The first allocation of Contracts for Difference is on track to be held in Autumn 2014, with government publishing the final Contract for Difference and Allocation Round notice in the coming weeks.
A spokesman for the UK Dept of Energy (DECC) said: “These reforms will enable the UK to develop a clean, diverse and competitive mix of electricity generation, and will be a better deal for the consumer. Household electricity bills are estimated to be 6% (£41) lower on average every year up to 2030 than reducing emissions through existing policies.”
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