‘Well-designed UK Capacity Market reforms could save £600m’

Well-designed reforms to the Capacity Market mechanism could yield savings to UK consumers of £600m ($837m) by rewarding renewables for the contribution they make to security of supply, according to a new report from Aurora Energy Research.

The most recent Capacity Market auctions concluded in early February, with clearing prices of £6.00-8.40/kW – a substantial decrease on previous auctions.

Aurora’s report identified falling demand, demand side response and interconnectors as “key factors” that contributed to the drop in capacity prices.