Capacity Market: Proposed changes for Prequalification 2026

Overview

The Capacity Market is at the heart of the government’s strategy for ensuring security of electricity supply in Great Britain. It was first introduced in 2014 as part of the Electricity Market Reform programme to support investment in capacity and deliver value for money for consumers. Existing and new build electricity capacity providers compete to obtain Capacity Market Agreements under which they commit to deliver capacity when needed, in return for guaranteed regular payments.  

The proposals in this consultation aim to reform the Capacity Market to ensure continued security of supply, align the scheme with the government’s decarbonisation goals, and improve the functionality of the scheme.

Why your views matter

We are seeking the views of the energy industry, consumer groups, academia, think tanks and other organisations who have an interest in security of supply and decarbonisation.