How will the Medium Combustion Plant Directive affect Capacity Market participants?
Published by Saskia Barker 01 / 02 / 18
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The Medium Combustion Plant Directive (MCPD) seeks to reduce air pollution by controlling emissions from medium combustion plants (MCPs), which include both generators (with a rated thermal input between 0 – 50 MW) and boilers (with a rated thermal input between 1 - 50 MW).
The Government implemented the MCPD’s requirements using a Statutory Instrument (SI), which completed its passage through Parliament on 24th January. The SI will come into force shortly.
- The SI affects only England and Wales. Plants in Scotland are subject to different legislation.*
- New plants will be affected from 20th December 2018.
- Existing sites will need to comply with the legislation by 2025 or 2030, with the exact compliance deadline depending on the size and run hours of the plant (larger plants must comply sooner than smaller plants).
However, generators who win contracts in the Capacity Market T-1 and T-4 auctions in January and February this year must meet the new obligations by 1st January 2019. This also applies to new balancing services contracts (with the National Grid).
Back-up generators that run for less than 50 hours per year are exempt from the regulations unless they’re providing balancing services or participating in the Capacity Market, in which case compliance is required.
Flexitricity will support all our Energy Partners throughout this process. We will run a webinar in February where we will discuss the implications of the legislation and provide step-by-step, detailed guidance on compliance. The date will be announced shortly. In the meantime, if you require any assistance please contact your account manager who will be happy to help – call 0131 221 8100.
*The implementation of the MCPD in Scotland was dealt with using different legislation passed by the Scottish Parliament. In Scotland, generators that run for less than 500 hours are exempt. However, this might change in the future.
Flexible energy specialist Flexitricity has announced that it has partnered with eight organisations across a range of sectors to trial an innovative solution with the potential to revolutionise the demand side response (DSR) industry.
The Quickturn project, funded by the Department of Business, Energy and Industrial Strategy (BEIS), aims to provide the first realistic opportunity for smaller commercial energy users across Britain to benefit from demand side response. That includes SMEs as well as smaller sites that are part of larger, multi-site estates.
The partner sites include Asda, Glasgow City Council, Jones Food Company, Norish, Northumberland County Council and Scottish Water Horizons.
The Quickturn project will help these sites reduce energy costs and earn revenue through providing electricity system balancing services to National Grid. Previously, participation has not been economically viable for smaller sites due to the cost of hardware, communications and implementation.
Similar to large-scale DSR, Flexitricity will utilise its expertise in dispatching flexible energy-consuming assets such as cold storage, air conditioning and heat pumps to help National Grid balance the fluctuating demands of the UK energy system.
The University of Edinburgh’s Institute for Digital Communications will also contribute its world-class expertise in emerging technology to increase communication speed and reliability, reducing the overall cost of setting up DSR dispatch systems across the partner sites.
The trials are now set to commence with findings expected to be shared in 2020.
Dr Alastair Martin, founder and CSO at Flexitricity, said: “The ongoing drive towards a low carbon economy means that small businesses will have an important role to play in helping National Grid meet the energy demands of the UK.
“Flexible energy use is a vital part of a greener energy system, balancing variable renewable generation and growing demand as heat and transport are electrified. Flexitricity’s mission is to make this feasible and economically attractive for all types of energy user.
“We are very excited and proud to working with a host of recognised partners as we develop the tools that will enable businesses and public sector organisations to take control of their energy usage and earn much needed additional revenue.
“From this perspective we are now looking forward to embarking on the trials and proving a cost and time effective solution that fits the requirements of National Grid and helps smaller commercial energy users take advantage of the UK’s need for flexible power.”
Flexitricity has pioneered the demand-response industry, generating over £20million for its energy partners since its launch in 2004. It is the first supplier in the UK to provide full, active participation in the Balancing Mechanism for demand response assets.
The Edinburgh-headquartered business now has close to 500 MW under management – a virtual power plant helping the National Grid meet the energy demands of the UK.
Ends
Issued by Media Zoo on behalf of Flexitricity.
For more information please contact:
Neil McDonald: neil@mediazoo.tv / 07428 398 402 / 0141 471 8399
Ross Henderson: ross@mediazoo.tv / 07954 995 104 / 0141 471 8399
Notes to Editors:
About Flexitricity
Flexitricity created and now operates the first, largest and most advanced demand response portfolio in GB and has unsurpassed knowledge of the market and its requirements.
Headquartered in Edinburgh, Flexitricity partners with businesses throughout Great Britain to provide reserve electricity to National Grid. The word “Flexitricity” means “Flexible Electricity”. The company looks for flexibility in electricity consumption and generation, creating revenue for energy users and generators as well as reducing national CO2 emissions and helping to secure energy supplies.
Their team is fully engaged at industry and regulatory level and has a track record that demonstrates innovation and delivery success.
Flexitricity is part of the Alpiq Group, a leading Swiss electricity and energy service provider with a strong presence across Europe.
Get in touch today
Book a call with one of our energy market specialists to find out if you can participate and how much your site could earn.
0131 221 8100