Consultation on the Electricity Market Reform (EMR) White Paper. Annex C – possible models for a Capacity Mechanism: IET, Royal Academy of Engineering and Institution of Mechanical Engineers comments to the Department of Energy and Climate Change (DECC).
The future of electricity generation in the UK is uncertain, as it is in many other countries. There is thus significant potential for the system to evolve in unexpected ways, and/or for supply and demand to become mismatched. Experience would indicate that in such circumstances plant margins probably need to increase at just the time that they are trending downwards. Ensuring reserve capacity should thus have greater importance in the reformed electricity market. It is recommended that the amount of capacity should err more towards “too much” rather than “too little” as the economic consequences of insufficient supply are high.
Submission Details Submitted on 04 October 2011 to Department of Energy and Climate Change (DECC)