Consultation outcome

Open letter on new technologies in the Capacity Market

Updated 30 November 2022

This was published under the 2022 Truss Conservative government

We are consulting with interested parties to determine whether any new generating technologies, which could participate in future Capacity market auctions, have emerged since we consulted in 2021.

Rule 2.4 of the Capacity Market Rules requires the Secretary of State to consult with stakeholders each year, by 1 October, to determine whether any new generating technologies are capable of contributing to security of supply. Any new technologies, not already identified as a Generating Technology Class, should be eligible to participate in future Capacity Market auctions. This open letter seeks views on whether such new generating technologies exist.

In response to our consultation last year (October 2021), stakeholders identified vehicle-to-grid (V2G) as a new technology which is not currently listed as a Generating Technology Class (GTC) in the Capacity Market, which may be able to contribute to security of supply in Great Britain.

Vehicle-to-X (V2X, where X could represent the home, a building or the grid) is an emerging technology enabling the export of energy from EV batteries. There are trials worldwide involving hundreds of vehicles, but it is not yet at mass commercial deployment.  A Call for Evidence, seeking views on the potential role of V2X, and the barriers preventing this, was published in 2021, and feedback from it is helping inform government’s next steps to facilitate this source of flexibility. Stakeholder responses to the V2X Call for Evidence showed support for the participation of aggravated V2X batteries in the Capacity Market. Government plans to publish a response to the V2X Call for Evidence in 2022.

Through this year’s consultation exercise, we are also keen to understand whether vehicle-to-grid (V2G) is any closer to being able to contribute to security of supply. We are eager to hear of any updates on the progress of this technology over the past year and its potential to contribute to security of supply.

Please respond with details of the technology and evidence of its contributions to security of supply to [email protected] by 11pm on 1 November 2022.

Some examples of the type of information that would support suggestions and aid our decision-making is provided below. Please note that this list is not exhaustive, and it is not necessary to provide all the information below in order for us to consider your suggestion. However, the more information we receive, the more evidence we are likely to have at our disposal to assist in our decision-making process. If authorised, we may get in touch with respondents to ask follow-up questions.

Please include your contact details in your response if you are open to receiving follow up questions.

Please also indicate in your response whether you would like us to treat your response as confidential.

Types of information

• a brief description of the technology
• does the technology already exist, has it been deployed commercially at scale?
• is there any evidence to show that the technology is commercially viable, for example a proven business model?
• is the technology able to contribute to security of supply at periods of peak electricity demand, for example by generating electricity or reducing electricity demand?
• what evidence is there relating to the reliability and availability of this technology at periods of peak electricity demand?
• is the technology significantly different from existing Capacity Market generating technology classes to warrant its own class?
• what is the fuel source or source of energy for the technology? If fuelled, is it a fossil fuel?
• is the output of this technology fully controllable or is it dependent on an intermittent energy source?
• are there any limitations on the length of time the technology can operate continuously at full capacity during peak periods, for example, due to limitations on fuel / energy source or running hours? If so, what are the typical duration limits?
• contact details (for any follow up questions)

We will publish the outcome of the review by 1 December 2021, as required by Rule 2.4.1(b) of the Capacity Market Rules.