Tag Archives: capacity market

How can Britain keep the lights on without subsidising fossil fuels?

London nightBritain has an extraordinarily reliable power system. The lights flicker so rarely that it is easy to forget that the power system is actually a finely tuned and, in some ways, fragile machine, which breaks if electricity demand and supply are not in balance. Perturbations, such as the up-tick in demand after the FA Cup final, or the sudden outage of a coal plant, must be steadied within seconds. Read more

How cheaper negawatts are made to look more expensive than watts

Negawatts_websiteThis post is by Nic Craig, Green Alliance policy intern, Amy Mount and Dustin Benton

The capacity market, which provides payments to ‘keep the lights on’, is one of the energy policies still surviving after a summer of scrappages and watering down. The bidders for the second auction were announced at the end of last week, and, as before, the list is dominated by carbon heavy power stations: 48 per cent gas plants and 19 per cent coal plants (including Aberthaw, which raises the worrying prospect of public money supporting a power station that’s currently breaking pollution laws). Read more

Will the UK’s electricity market reform deliver investment?

davey event 030Around 100 representatives from across the energy policy field joined Ed Davey, at a Green Alliance debate on Monday, to discuss the final stages of the somewhat tortuous process of reforming the UK’s electricity sector. The main question asked was whether the process, now going into its third year, will actually result in much needed investment in both low carbon supply and energy efficiency. Read more

How to ensure investment in energy efficiency…and how not to

negawatts_WEB_AW-1The government is looking at ways for the forthcoming Energy Bill not only to drive investment in new sources of low carbon power but also to pay for much needed investment in energy efficiency. There are different ways this could be done but the government’s lead option is to enable energy efficiency projects to take part in a new capacity market aimed at making sure we have enough electricity generating capacity to keep the lights on. Read more