Great Britain's Capacity Market is a scheme that uses competitive auctions to make sure there is enough electricity available to meet peak electricity demands in order to prevent blackouts. It does not include Northern Ireland.
The new plans published for consultation today will ensure the scheme keeps pace with the transition to cleaner energy sources and technologies on the GB grid which are often cheaper than fossil fuels, albeit more intermittent.
The UK has committed to decarbonising its electricity system by 2035. Last week, new figures showed that a number of low-carbon records were broken in 2022 and the greenest year for energy generation overall.
Coal in particular, which is the most carbon intensive fossil fuel, has dropped from 43 per cent of the electricity produced in 2012, to only 1.5 per cent of generation in 2022.
The capacity market reforms include consulting on new contracts for low-carbon technologies to incentivise their participation...