Capacity Market Update: New Carbon Emissions Limits for Participants

On 4 July 2019, the Recast EU Electricity Regulation (the Electricity Regulation) came into effect as part of the EU’s Clean Energy Package. The Electricity Regulation has direct effect (takes full effect in law) in the UK, and Article 22 concerns “Design Principles for Capacity Mechanisms” and includes carbon emissions limits for new and existing generation seeking agreements in Capacity Market auctions. Rob Broom (Associate) and Michael Zamecnik (Trainee) from our Energy & Natural Resources Practice, consider the changes to the Capacity Market Rules and impact on generation types resulting from these new limits.