PartyOperator
Member
- Joined
- 26 May 2019
- Messages
- 166
I pe
Fair point. I suppose the last one was around a decade ago.
Do we trust the next one to be though !
The bigger picture is how do we incentivise the grid, to ensure that the lights remain on !
We were 'incentivising' generators through the Capacity Market, which was blocked by the EC as illegal state aid. The loss of that income probably contributed to a few GW of coal capacity being shut down ahead of plans. The question is really do we trust the government to come up with 'innovative' contracting mechanisms that are not terrible in every way? If the government (or the system operator) had wanted a particular kind of new plant like pumped storage of CCGTs, they had plenty of legal avenues available to get one of those built. Instead they came up with a convoluted 'market-based' solution that propped up a few existing coal units and led to a load of new diesel generators being bought but no real long-term solutions, and in the end the whole thing wasn't compliant with competition law and got shut down unexpectedly. The electricity industry often makes rail look like a model of sensible long-term planning and well-informed government engagement...