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UK Capacity Mechanism

UK Capacity Mechanism

First signs that payments to old coal will undermine climate goals:

Early evidence shows that DECC’s clumsy Capacity Market will actively subsidise 45-year old coal power stations to stay open that would otherwise have shut, and will consequently crowd out opportunities for new gas power stations to be built and discourage new demand-side response. Keeping additional coal open towards 2030 will put the UK’s legally-binding climate goals under threat. In addition, the auction’s perverse design could result in a windfall to the French nuclear company EDF of up to £2.6 billion.

Read our blog here.

Skills

Posted on

October 2, 2014