The Capacity Market is the flagship program of the UK Government’s Electricity Market Reform. KiWi Power and our network of clients act as a ‘virtual power station’ aggregating assets from multiple sites in order to reduce stress on the grid at peak times. It is new into the mix of demand response programmes that KiWi Power offer, currently in its second delivery year (17/18).
The Capacity Market can be run in conjunction with most other Demand Response Programmes and so is perfect to participate in as an additional service for many sites already doing demand response, or even exploring it for the first time.
The Capacity Market offers industrial and commercial clients the opportunity to monetise electricity generation and management assets on site such as CHP, generators and batteries. This programme is open to anyone who is able to run assets for up to four hours when given four hours notice that their asset will be needed
The Benefits to Customers
The Capacity Market offers the broadest range of enrolment possibilities of all demand response programs which is of major benefit to many industrial and commercial clients in the UK. For many clients participating, the Capacity Market opens an annual, recurring revenue stream without the need to alter any site operations – for example, CHPs that are running 24 hours can receive payments for what they are doing already.
The Commissioning Process
The Capacity Market operates via an annual auction cycle, with auctions taking place to deliver capacity one year ahead (T-1) and four years ahead (T-4). Within each auction capacity providers can chose to enter the CM through various routes, for example:
- Existing Generation
- Unproven Demand Side Response
- New Build Generation
The project or asset you wish to enrol will determine which route you will take. Give KiWi a call today to find out which route will best suit your site.