EUAA Submission: Capacity Commitment Mechanism & Synchronous Service
Emily Wood | October 21, 2021
‘…We support the submissions made by Shell Energy and Major Energy Users on this matter.
The energy transition is requiring the exit of synchronous fossil fuelled generators that to date have provided all the essential system services as part of a bundled service with the provision of energy. The transition means these essential system services are becoming unbundled from energy and may now need to be provided separately.
Before deciding the best way to provide these system services we need to be sure that their separate provision will lead to an overall net benefit to consumers. This assessment should not be driven by spot price forecasts as these are uncertain and dependent on modelling assumptions and methodologies. There is very little load actually exposed to spot prices and the pass through of lower spot prices in the price’s consumers pay, whether large or small, is uncertain and difficult to measure…’
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