Capacity Market

The Capacity Market (CM) is part of the UK Government's Electricity Market Reform package.

The Capacity Market (CM) was introduced by the UK Government to manage security of electricity supply and safeguard against the possibility of future blackouts.

CM participants are paid to ensure they’re available to respond when there is a high risk that a System Stress Event could occur. This happens very rarely. The vast majority of the time, participating assets operate as they normally would.

To earn CM revenue for our customers, we take their assets into capacity auctions where the price is set. Providers who are successful in the auction(s) are awarded a Capacity Agreement, which confirms their Capacity Market Obligation and their payments.

There are two capacity auctions each year:

  • T-4 – this is the main auction; it buys most of the capacity needed for delivery in four years’ time. In this auction, new build generators can secure 15-year agreements.
  • T-1 – these are top-up auctions just ahead of each delivery year. We generally use top-up auctions for sites which were not ready in time for that year’s T-4 auction. Most businesses will want to move into T-4 as soon as possible to take advantage of known, and higher, prices.

What we do:

  • Our expert Capacity Market team manages all aspects of the auction process for your assets.
  • We work with each site to ensure that they meet their capacity obligation by achieving Satisfactory Performance Days (SPDs)—three separate half-hour settlement periods on which capacity is ‘proved’.
  • Flexitricity offers access to the full range of energy market opportunities. Capacity Market participation can be stacked with other flexibility services – you don’t need to opt out of frequency response or Balancing Mechanism participation to be able to earn CM revenue.
Capacity Market

Our Capacity Market credentials:

  • Flexitricity was the first demand response provider to enter this market and has held contracts for each delivery year.
  • Flexitricity hold Capacity Market Agreements as far out as 2039.
  • Our Capacity Market team is known and respected across the industry for their expertise.
  • We have demonstrated that we are able to manage even the most complex projects. This includes successfully aggregating 500+ Asda supermarket fridges for Capacity Market participation. Flexitricity is one of the first providers in the world to achieve this.

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

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