Teresa Pearce – 2016 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by Teresa Pearce on 2016-01-13.

To ask the Secretary of State for Energy and Climate Change, what level of financial return the Government expects from diesel generators who will benefit from payments through the capacity market.

Andrea Leadsom

The Government itself will not make any financial return from generators participating in the capacity market. As with all types of capacity, diesel generators that have been successful in the second capacity market will receive a payment of £18/kw in return for providing electricity at short notice when the system requires it; and may have other sources of revenue outside the capacity market. Diesel engines are a flexible form of capacity that run for short periods to meet peaks in demand, and can reduce the consumer bill impacts by lowering the cost of securing the necessary capacity.