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Capacity Market: Consultation on changes for Prequalification 2027 and Open Letter on Annual Technology Review
02 September 2026
Type
Written Ministerial Statement
Department
Department for Energy Security and Net Zero
At a Glance
Issue Summary
The minister is addressing the publication of two documents relating to the Capacity Market, including a consultation on changes for Prequalification 2027 and an open letter on new technologies for the Annual Technology Review.
Action Requested
The minister is inviting stakeholders to provide views and supporting evidence on the proposed changes to the Capacity Market framework, including the inclusion of new generating technologies. The consultation period aims to ensure the scheme remains cost-effective and aligned with the transition to clean power.
Key Facts
- The Capacity Market was introduced in 2014 to secure sufficient electricity capacity.
- The Capacity Market funds new and existing generation, interconnectors, batteries, and consumer-led flexibility mechanisms.
- Annual auctions are held four years and one year ahead of their respective delivery years.
- The Prequalification 2027 consultation seeks views on strengthening confidence in capacity delivery, valuing consumer-led flexibility, and improving the scheme's administrative and operational aspects.
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