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Book a call with one of our energy market specialists to explore how we can connect you to revenue-generating opportunities in flexible energy markets.
0131 221 8100
info@flexitricity.com
Book a call with one of our energy market specialists to explore how we can connect you to revenue-generating opportunities in flexible energy markets.
0131 221 8100
info@flexitricity.com
The Capacity Market (CM) is a key component of the UK Government's Electricity Market Reform, designed to ensure the security of electricity supply.
The CM ensures that there is sufficient capacity available to meet peak demand, safeguarding against the risk of future blackouts. Participants in the CM are paid to ensure their assets are available to respond during System Stress Events, which occur rarely. Most of the time, assets continue their usual operations, but they are called upon during periods of high demand to maintain grid stability.
To secure CM revenue, assets participate in annual capacity auctions. These auctions determine the price of capacity agreements, which confirm a provider’s Capacity Market Obligation and the associated payments. The two main auctions are the T-4 auction, which procures most of the capacity needed for four years into the future, and the T-1 top-up auction, held closer to the delivery year.
At Flexitricity, we have been operating in the Capacity Market since its inception, and our dedicated team manages every aspect of participation to maximise returns for your assets.