Capacity Market

The Capacity Market ensures that there is sufficient generation capacity to meet demand 1 and 4 years ahead of delivery


Watch this episode of The Energy Academy to learn more

Payments are assigned to assets which hold a Capacity Market contract, and are evenly split across every settlement period within the month.

Revenues are adjusted using the monthly payment weighting factors issued by the Low Carbon Contracts Company. These scale payments across the delivery year so that the highest payments are paid when demand is high, and lowest when demand is low.

Payments for T-4 contracts are adjusted for inflation using the consumer price index.