Page 24 - Gi flipbook April 2019

THE CAPACITY

MARKET CONUNDRUM

The suspension of the capacity market has fired up
uncertainty among gas plant operators. Phil Hewitt,
Director of Energy Market analyst EnAppSys, explains
how a prolonged suspension could trigger the closure
of dozens of CCGT plants

n November 2018, a landmark for many thermal plant operators – winter, there have been no instances
European Court of Justice (ECJ) especially those who have secured of gas plants shutting down and it’s
ruling led to the indefinite contracts in previous auctions and not difficult to see why. While the loss
suspension of the UK capacity those who were hoping to place of capacity mechanism revenue is an
I market (CM). The decision has successful bids in the (now cancelled) inconvenience, it is currently more
created widespread uncertainty auctions which had been scheduled for optimal to wait and see what happens
throughout Britain’s energy market February 2019. in the hope the scheme is reinstated.
which, if not fixed, could over time In the short term, the effects of the In the longer term, however, the
result in a significant loss of income suspension are negligible. So far this picture becomes more complicated.

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