Seasonal forwards considered temporarily the most appropriate indexes for baseload reference price in the UK FIT CfD
- Category: Capacity Markets
The reference price for baseload generation under the UK FIT CfD contracts scheme (implementation thereof is intended in summer 2014 already) will initially be calculated from the two reference prices each year; one set every six months, however, the concrete set of indices and their weightings are yet to be confirmed, thus financial assessments are still not viable.
Moreover, the longer term intention is to move in that regard to year-ahead forward prices and the unknown mechanics of this transition adds to the investors' risks.
Capacity market's MiFID/EMIR treatment
- Category: Capacity Markets
UK capacity market in the light of EC State aid requirements
- Category: Capacity Markets
The intended UK capacity market, the major milestones thereof have been recently revealed, appears to reflect the key points of the European Commission' recent consultation on State aid criteria to be applied to capacity mechanisms.
Capacity markets vs. Internal Electricity Market – will State aid weapon be used?
- Category: Capacity Markets
Capacity mechanisms attempt to ensure that electricity undertakings (often suppliers) assume the responsibility to provide or pay for generation capacity which they would not otherwise do, or at least not to the same extent, considering only their own commercial interests. According to the European Commission’s stance it is possible that such a mechanism constitutes a public service obligation and involve State aid. The above notwithstanding, UK prepares for capacity auctions from 2014 for delivery of capacity in the winter of 2018/19, if needed.