Capacity Market: changes for Prequalification 2027

The Capacity Market (CM) is the UK government’s main tool for ensuring continued security of electricity supply. The CM provides incentives for all forms of capacity, including generation, storage, consumer-led flexibility and interconnection to be on the system to deliver when needed. Agreements secured under CM auctions provide revenue streams which support investment in electricity capacity which in turn ensures security of supply.

Since its inception, the CM has evolved to reflect policy and market changes. Achieving clean power by 2030 will require a renewables-led, decarbonised system supported by a diverse portfolio of flexible technologies to balance supply and demand, with the CM playing a key role in securing this capacity.

To maintain security of supply, it is essential that procured capacity is reliable and deliverable. This consultation outlines proposals to strengthen assurance of delivery, improve CM Rules accessibility, and build on previous changes relating to consumer-led flexibility (CLF).

The consultation includes proposals to address the following:

By email to capacity.market@energysecurity.gov.uk

Electricity Security and Market Reform  Capacity Market Delivery Team    Department for Energy Security and Net Zero   3-8 Whitehall Place    London   SW1A 2EG

Responses close 27 October 2026.