Newness trumps energy efficiency for longer capacity contracts

An update to capacity market rules favours new-build for longer contracts, but shies away from stringent emissions and efficiency standards to preserve technology ‘neutrality’

DECC is to use a proxy measure of newness to screen out older generating plant from long term capacity market contracts, but it says this is not aimed at driving up carbon and energy efficiency performance standards. 

The capacity market was set up to ensure back-up electricity capacity to increase energy security in return for steady payments on top of other electricity sales. But DECC wants only new plant to secure the longest contracts to encourage new investment and technology.

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