Capacity Market: Consultation on Changes for Prequalification 2027
House of Commons · Written Statements · 2 Sep 2026 · 1 speech · Official Report
I am tabling this statement to inform Members of the publication of two documents relating to the capacity market: A consultation on changes for prequalification 2027; and An open letter inviting stakeholder views on new technologies in the capacity market. The above documents support our objectives of delivering clean power by 2030 and accelerating progress towards net zero, while ensuring security of supply. Since its introduction in 2014, the capacity market has secured sufficient capacity to ensure consistent and reliable electricity supply in Great Britain. The funding provided through the capacity market scheme aims to incentivise investment in new and existing generation, interconnectors, batteries and consumer-led flexibility mechanisms to ensure that sufficient capacity is available to meet future demand when required. This capacity is acquired through competitive annual auctions held at intervals four years ahead and one year ahead of their respective delivery years. The Government regularly amend the framework underpinning the capacity market before auction cycles to ensure that it is cost-effective and meets broader strategic objectives, including the transition to clean power. The prequalification 2027 consultation published today seeks views on a package of proposals intended to strengthen confidence that capacity secured through the capacity market will be delivered when required, ensure that consumer-led flexibility is appropriately valued for its...