Ministers should redesign the capacity market to incentivise energy storage and demand-side response (DSR) technologies, the House of Commons Energy & Climate Change Committee has said.

In their final report before the committee was disbanded, MPs accused the current system of favouring diesel generators.

They highlighted discrepancies in the system, including 15-year contracts for power stations, but only four-year contracts for energy storage facilities and just one-year contracts for DSR.

Ministers have argued that DSR cannot yet be trusted to provide enough capacity fast enough.

‘Incredible opportunity

Committee Chairman Angus MacNeil said: “The UK Government must get a move on and encourage the energy market to embrace smart technological solutions like energy storage and DSR.

“There is an incredible opportunity for the UK to become a world leader in these disruptive technologies.

“Yet our current energy security subsidies favour dirty diesel generation over smart new clean tech solutions.”

> Read the report