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Capacity Market

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. 

What we do

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. 

  • Auction Participation: Our expert Capacity Market team handles the full auction process, from registration to bidding, ensuring your assets secure the best possible agreements.
  • Satisfactory Performance Days (SPDs): We work with each customer to ensure they meet their capacity obligations by achieving SPDs, verifying asset performance during critical periods. 
  • Stacking Revenue Opportunities: Participation in the Capacity Market does not prevent assets from earning revenue in other flexibility services. We ensure that your assets can earn from the Capacity Market while also taking part in other services. 
  • Asset Suitability and Setup: We assess and prepare a wide range of assets for Capacity Market participation, including new and existing generators, flexible loads, and energy storage. This includes verifying metering setups to ensure compliance with Capacity Market service requirements. 
  • Connection and Integration: We connect your assets to our 24/7 Control Room via an API or outstation hardware, providing real-time communication and data flow. When a Capacity Market Notice is issued, our Control Room operators work closely with your site to ensure assets are fully prepared and ready to respond. 

Request a Callback

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

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