Electricity Generation: Carbon Emissions

(asked on 1st June 2020) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he has taken to introduce carbon emissions limits in the capacity market.


Answered by
Kwasi Kwarteng Portrait
Kwasi Kwarteng
This question was answered on 9th June 2020

In July 2019, the Department introduced within the Capacity Market, through the Capacity Market (Amendment) (No. 5) Rules 2019,[1] the carbon emissions limits contained in the recast “Electricity Regulation” (Regulation (EU) 2019/943. These changes ensure that new capacity, which started commercial production on, or after 4 July 2019, and which does not comply with the emission limits, cannot be awarded capacity agreements in capacity auctions held from 2020 onwards, or receive capacity payments.

The Department ran two further consultations, between 22 July 2019 and 13 September 2019[2] and between 3 February and 2 March 2020,[3] on legislative changes intended to apply these limits to capacity which existed before 4 July 2019. The Government Response to these consultations, published on 20 May 2020,[4] outlines a system for monitoring and verifying compliance with the emissions limits, as well as confirming the intention to apply the limits to existing capacity from 1 October 2024.

The Department will make the necessary changes to the Capacity Market Rules ahead of the opening of the prequalification period for the capacity auctions scheduled for early 2021.

[1]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/818851/Capacity_Market__Amendment___No._5__Rules_2019.pdf

[2] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/829746/proposals-capacity-market-emissions-limits-consultation.pdf

[3] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/862674/capacity-market-consultation-future-improvements.pdf

[4]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/886147/Future_improvements__emission_limits_and_coronavirus_easements_-_government_response_to_consultations.pdf

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