Capacity market: Fossil fuels favoured over renewables?

In December 2014 it was announced that, through the Capacity Market auction, generators are to receive almost £1 billion towards securing generation capacity in future years in order to safeguard that there will be sufficient generation to meet demand at peak times. The Capacity Market has been introduced as one of a number of measures under Electricity Market Reform which aims to combat concerns over security of supply, while also securing affordable energy and enabling the transition to a lower carbon economy. However, this month the Energy and Climate Change committee (ECC) issued a report which argues that the Capacity Market favours fossil fuels rather than renewables. Read more of this post

Government Announces Outcome of First CfD Auction

The UK government has announced that it will hand out £315 million to 27 renewable energy projects as a result of its first competitive auction for “Contracts for Difference” (CfD). The contract awards could result in more than 2GW of new capacity, with the Government further stating that funding for CfDs could rise to over £1 billion per year by 2020/21.


The majority of the 2GW of new capacity to be funded through the first auction round was awarded to two offshore wind projects totalling 1.1GW in capacity. In addition, 15 onshore wind projects and 5 solar projects will receive funding contracts. According to the Government, the auction process means that the investment will cost the consumer £110 million less than it would have without competition. Read more of this post