A new Department for Business, Energy and Industrial Strategy (BEIS) consultation paper proposes reforms to the UK Capacity Market, the contract system which provides incentives to electricity providers to ensure security of supply is maintained. The potential changes to the market are designed to boost investment in cleaner alternatives to the gas-fired power stations that have so far dominated this market , with most of them being existing plants. Controversially, some old inflexible nuclear plants have also been subsidised under the scheme- for example 4 in the 2021 four year ahead (T4) contract round. BEIS doesn’t mention that, but says energy storage systems and flexible grid/demand response services ought to be encouraged now, along possibly with Carbon Capture, Utilisation and Storage plants, although it’s worth noting that the gas plants with CCUS are likely to be less flexible. But, for good or ill, as we shall see, some gas plants will be allowed to run if their emissi...
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