Changes being proposed by the UK Government to the Capacity Market could make it easier for demand side response (DSR) and energy storage technology to take part in auctions.

Units offering DSR of 500kW and above will be able to take part in the auctions. The next auction will be held in December, with pre-qualification opening in August.

The Department of Energy & Climate Change (DECC) also plans to introduce stiffer penalties for companies that fail to fulfil their Capacity Market contracts.

REA still has reservations

Frank Gordon, Senior Policy Analyst at the Renewable Energy Association, said: “The reforms announced today to the Capacity Market are welcome in terms of making it slightly easier for storage projects to take part in the Transitional Auctions.

Frank Gordon, Senior Policy Analyst at the Renewable Energy Association, said: “The reforms announced today to the Capacity Market are welcome in terms of making it slightly easier for storage projects to take part in the Transitional Auctions. 

“We also welcome stronger penalties for not delivering capacity, which was previously missing from the scheme.

“However, the scheme continues to support higher-carbon electricity generation, at a time when the Paris climate talks highlight how the UK must transition away from these sources.

“Renewables can offer the capacity we need and in the timescales required without the need for an expensive mechanism that adds little to new-build capacity.”

> Read the UK Government's response