SmartGrid GB is delighted to announce the publication of its new report which looks at the government’s plans for the creation of a Capacity Market and its implications for demand side response in Britain.

The report, written with the assistance of international law firm Bird & Bird, commends the government for proactively engaging in reforms that are designed to address the nation’s future energy needs, but cautions that the pace of the Capacity Market reforms risks damaging the future demand side response industry.

The report outlines five core recommendations:

  • Long-term investment in DSR is likely to benefit from a delay in the production of the design for the DSR aspects of the Capacity Market (as against the Government’s proposed timetable).
  • DSR should not be seen as monolithic and there is a strong case for offering a variety of DSR product arrangements within the Capacity Market mechanism.
  • DSR should be granted a level playing field free from a one-size-fits-all approach that may favour one type of capacity.
  • The Capacity Market should have the ambition of opening up new sources of capacity, and innovative new markets, rather than relying predominantly on existing players and mechanisms.
  • A national energy vision and strategy, supported at Cabinet level, is needed to provide a clearer direction of travel, reduce investment uncertainty for industry and, crucially, to ensure all aspects of energy policy are coordinated.