Capacity market targeting 53.3GW

Edward Davey, Secretary of State for Energy and Climate Change has announced the Government’s expected electricity generation capacity for the re-launch of the UK Capacity market.

The National Grid had previously recommended that the Government seek to create a total of 53.3GW of electricity generating capacity. This level would see that sufficient power is available to meet demands of homes and businesses into the future. This level is equivalent to 17 new nuclear power stations being available.

The first capacity market will be available for delivery in 2018/2019.

Davey said:

“There was a real risk back in 2010 that an energy crunch would hit Britain in the middle of this decade and lead to damaging power cuts. But the excellent news is that with today’s announcement we have the final piece of the jigsaw of our detailed energy security plans and can now say with confidence that we have defused the ticking time bomb of electricity supply risks we inherited.” “Britain is a world leader in energy security - leading in the EU and ahead of every other G7 country. Today’s announcement - coupled with our record amounts of investment in renewables and electricity infrastructure, our revival plans for the North Sea and the most healthy pipeline of investment projects in new generating capacity and interconnectors ever - means we will remain a world leader.” The capacity market will focus on the UK’s medium term electricity need, ensuring supply for the end of the decade. The Government has an investment strategy to invest in renewables, energy efficiency, better interconnection and nuclear in the short, medium and long terms.