Comment: Lack of government consistency confusing capacity market following T-1 Auction
9th February 2018
The Provisional results of the T-1 Capacity Market auction
The provisional results of the recent capacity market auction are worrying for many reasons. The clearing price has hit rock-bottom reaching £6.00 per kW per year. Gas came out on top with 75.55% of the overall fuel type, followed by 7.57% for coal and 7.45% for Demand Side Response (DSR).
Battery storage was only awarded 1.69% and 0.08% for solar with one awarded Capacity Market Unit (CMU). Gas is considered a low-carbon fuel, but it is still un-renewable and not as green as renewable energy. Solar and Battery Storage percentages are very low and will make it harder to achieve a low-emission energy mix.
The results are confusing for those interested in the capacity market due to the lack of consistency between the government’s clean growth and coal-free strategies and the actual support and incentives provided for renewable energy or battery storage.
As advocates of renewable energy and battery storage, it feels like these future-proof solutions for energy storage are being disregarded with gas being the safer choice for the government. It clearly wants to achieve a low-carbon energy mix, but wants the private sector to pay the price, which we feel isn’t feasible given that only 11.11% of awarded capacity went to New Building Generating CMUs compared to 81.14% awarded to Existing Generation.
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About David Bowman
The founder of N-ERGY Power Solutions, David Bowman is a highly skilled and experienced project management engineer, having built a career that spans 16 years, working across all corners of the globe including Africa and the Middle East.
As an engineer in the Royal Air Force, David gained hands-on electrical, mechanical and civil experience, working under pressure supervising power generation sites in Afghanistan, Iraq, Oman and Germany, as well as being jointly accountable for the maintenance of plant machinery, including hydraulic safety raisers/platforms, lifting equipment, portable pneumatic supplies and production plants.
From leaving the Air Force, David’s focus switched to project management, overseeing multi-million-pound initiatives for power generation specific contracts in the UK and other countries, such as Ghana, Nigeria, Ethiopia, Benin, Sierra Leone and Burundi.
In 2014, David set up N-ERGY, a power and energy management consultancy that provides commercial management solutions for the capacity market and industrial power industry, as well as maintenance and servicing solutions for diesel, gas and
David’s wealth of expertise in engineering, contract work and project management enables him to provide full lifecycle project services, from understanding engineering design concepts, regulations and accreditations,
David is an advocate of the benefits of batteries as a long-term energy storage solution.
David is a full member of the Association of Project Management (MAPM) and works to Prince2 and Six Sigma principles.