Capacity market set to provide UK's back-up plan

UK capacity market - the vital back-up plan

Capacity has increasingly become a hot-button issue for the UK power market. Now, faced with thinning reserve margins and the prospect of heavier reliance on intermittent renewable power, the UK government is planning to create a capacity market as part of its long-awaited Electricity Market Reform (EMR).

The capacity market is designed to incentivise investment in reliable peaking capacity, such as natural gas-fired plants, as well as demand response. Although initially unpopular, the proposals

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