The Capacity Market was introduced in 2014 and plays a vital role in supporting the security and reliability of Great Britain’s electricity system. As the energy transition gathers pace and renewable generation continues to increase, the market helps ensure that sufficient reliable capacity is available to meet demand during periods of peak electricity use.
Participation is open to a wide range of assets, including both new and existing generation, on-site generation such as combined heat and power (CHP), battery energy storage systems, and an expanding range of flexible demand-side assets. Technologies including heat pumps, refrigeration, HVAC systems, industrial processes and controlled lighting can all provide flexible capacity. This creates new opportunities for businesses to generate additional revenue by helping to balance the electricity system when demand is high.
