February 28, 2018 Read More →

UK’s Capacity Market: Billions of Pounds Wasted

Energy Collective:

The Institute for Energy Economics and Financial Analysis (IEEFA) recently published a review of how nine countries and regions with exceptionally high levels of wind and solar power have coped with the variability of these power sources.

Britain has opted for a capacity market, in combination with other approaches, to cope with an expected increase in variability in electricity supply, as the country switches to the wind and sun.

The UK’s adoption of a capacity market may be overkill, putting vast sums of public money at risk

But it turns out that countries with far higher levels of so-called variable renewables are doing without capacity markets at all, finding that other measures are sufficient, such as investing in transmission capacity, reforming power markets and requiring renewable energy technologies themselves to play a bigger role in meeting power demand.

The UK’s adoption of a capacity market may be overkill, putting vast sums of public money at risk.

The capacity market approach pays utilities and other operators billions of pounds to commit to keep their coal, gas, nuclear and hydro power plants open, for up to four years ahead, regardless of whether they were planning to do this anyway, and regardless of whether they generate any electricity.

UK’s Capacity Market: Billions of Pounds Wasted

Posted in: IEEFA In the News

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