UK’s Capacity Market cleared to resume by European Commission

LinkedIn
Twitter
Reddit
Facebook
Email
The UK: still in Europe. Image: NASA.

The European Commission has approved Britain’s Capacity Market scheme following an in-depth investigation into its state aid compliance.

The mechanism was suspended last year following a landmark ruling, which found that the EC had erred on procedural grounds in granting state aid approval back in July 2014.

The case was launched after UK energy technology company Tempus Energy challenged the approval, claiming that the inner workings of the mechanism inherently favoured some forms of generation over others.

The General Court of the European Commission annulled the decision, effectively suspending the Capacity Market and preventing Britain from both running any further auctions and issuing any payments.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

This prompted an in-depth investigation from the EC, which today concluded that the scheme was clear to continue.

The Commission said it received and analysed feedback and comments from 35 interested parties.

The Commission said it did not find any evidence that the scheme would put any capacity providers at a disadvantage with respect to their participation in it, nor was it concluded that the mechanism distorted competition in the Single Market.

To read the full version of this story including industry reaction and analysis, visit Current±

Read Next

July 24, 2025
Greater deployment of renewable energy and battery storage in Illinois would help mitigate soaring costs of capacity market auctions in PJM Interconnection territory.
Premium
July 24, 2025
Steady price falls the past few years have made lithium-ion BESS a real contender for long-duration energy storage (LDES), and that is now reflected in global project pipelines.
July 23, 2025
Activity in the UK battery energy storage system (BESS) market continues to grow substantially year-on-year despite numerous headwinds, as detailed in this H1 recap from our Market Research colleagues.
July 22, 2025
RM Funds has proposed a meeting of it and other Gore Street Energy Storage Fund (GSF) investors to discuss changes to the board following ‘sustained underperformance’, it said.
Premium
July 15, 2025
Japan’s energy storage market is experiencing a wave of significant growth, as ESN Premium hears from Eku Energy and BloombergNEF.

Most Popular

Email Newsletter