Government response on new generating technologies for the future Capacity Market
Updated 1 December 2021
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On 1 October 2021 we published our annual open letter inviting stakeholders to share their views by 1 November, as to whether any new generating technologies which can contribute to security of supply, and which are not already identified as a Generating Technology Class (GTC), should be eligible to participate in future Capacity Market (CM) auctions (‘the open letter’). We received 3 responses from stakeholders to our open letter.
We are thankful to stakeholders for providing such comprehensive responses to the open letter. Two respondents highlighted the need to consider how technologies which enable electric vehicles to deliver electricity to the grid (vehicle to grid) can access the CM. The respondents noted that vehicle to grid is still considered an emerging technology but is expected to become commercially viable soon. They thought that it could be suitable to define a separate GTC for electric vehicles, rather than relying on existing GTCs such as those for storage or demand side response. The respondents pointed out that there are many factors across the electricity system, including the CM, that will need careful consideration to facilitate the participation of vehicle to grid technologies.
One respondent suggested the inclusion of tidal and geothermal technologies in the CM. They highlighted the significant potential for these technologies in GB, as well as their high levels of availability. We will continue to consider these emerging technologies with the ESO and how best to assess their potential contribution to security of supply and future participation in the CM recognising the limited data currently available. We will also use this annual open letter process to continue our engagement with stakeholders on the progress of participation of new generating technologies.
The Electricity Security and Market Evolution Team