The following flow diagram categorises the Capacity Market into five stages. The first stage 'Capacity' represents the determination of the Capacity to be procured. This stage is followed by 'Prequalification', which covers the procedure through which interested parties qualify for participation in the 'Auction'. Applicants who are successful in the Auction receive 'Agreements' outlining their Capacity obligation. Depending on Applicant type, certain obligations have to be fulfilled prior to and beyond the start of the Delivery Year. Once the Delivery Year commences, the agreements enter the final stage i.e. 'Delivery'. During the Delivery, the agreement holders need to be available for delivering their Capacity Obligation to receive Capacity Payments.
Click here to view the Introduction to the Capacity Market (coming soon)
Operational Plan
Each year, the National Grid EMR Delivery Body provides potential Capacity Market participants with details of the key Capacity Market operational activities and milestones through the Operational Plan.
Auction
The Capacity Market Auction is the process whereby successfully prequalified participants compete for a Capacity Market Agreement. The purpose of this descending clock auction is to meet the UK target capacity for the relevant Delivery Year.
Engagement and Events
This section covers the Delivery Body engagement approach and lists the upcoming events.
Agreement Management
After Capacity Agreements have been awarded for each Auction, Capacity Providers have certain obligations and rights. These include obligations related to reporting construction progress, achieving milestones etc. Capacity Providers may also make requests such as location changes, CMU Transfers etc.
Capacity
This section covers Electricity Capacity Reports and Security of Supply related information including the Demand Curve adjustments and De-rating factors.
Delivery
Once the CMU enters the Delivery Year, it has to demonstrate Satisfactory Performance. The CMUs also have options like Physical Trading and Volume Reallocation to reduce the risk of inability to meet their Capacity Obligation.
Prequalification
To participate in the Auction, Applicants have to go through the Prequalification process. The Applicants submit an Application per CMU per Auction for Prequalification. CMUs successful in Prequalification can then participate in the Auction.
Upcoming Milestones
Click on this link to access the Upcoming Milestones and Events Tool. The Tool covers agreement management deadlines and industry events and can be customised for CMU type and Auction year.
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