The government has hailed the securing of more than 52GW of electricity supplies for 2020-2021, through its capacity market including a range of different battery storage projects and two new gas power stations.
The capacity market was introduced by the government to provide an insurance policy against the possibility of blackouts in the future, in times such as periods of low wind and high demand, to make sure that customers have access to a reliable power supply at affordable prices. Power stations enter bids into the auction and the lowest price wins. The most recent auction was on 8th December, which cleared at a lower cost than the majority of forecasts (£22.50/kW per year.
Business and energy secretary Greg Clark said: “Our homes and businesses need an electricity supply they can rely on all year round. We’ve provided them with that certainty, at a low cost to bill payers, years in advance. Technological innovation, as part of our low carbon future, will create jobs and opportunities across the UK. We are rebuilding an archaic energy system, bringing forward brand new gas power and innovative low-carbon capacity like battery storage to upgrade our energy mix.”