The European Court ruling and subsequent suspension of the Capacity Market (CM) stunned the market. What are the implications?
Most large suppliers are working out their positions. For aggregators, what happens to payments, whether customers should or will respond to stress events this winter – and what happens to agreements secured for next winter and beyond – are questions they need answered in days rather than months.
For generators, some of the same questions apply. Large power stations must commit to transmission capacity months ahead of time. Given the cost and the uncertainty, some market commentators suggest operators of old coal and potentially gas plant may consider closing them down.
But for now, that’s unlikely. Read more…