The Capacity Remuneration Mechanism (CRM) is a competitive element of the Single Electricity Market designed to ensure electricity security of supply across the island of Ireland. Competitive auctions secure the necessary capacity to meet demand for delivery in a specified year.
During Working Group 12, which took place on 31 March 2020, six proposals were presented. Following the conclusion of the Working Group and given a number of factors, including the large volume of modifications discussed, requirements relating to EU Regulations and the ongoing COVID-19 situation, the Regulatory Authorities have made the decision to progress these Modifications in several batches.
Proposal CMC_05_20 is currently being consulted on under SEM-20-023 and, given that proposals CMC_09_19, CMC_07_20 and CMC_08_20 do not have a direct impact on either of the upcoming T-4 Capacity Auctions (For CY2023/24 and CY2024/25), the RAs plan to consult on these proposals as part of a separate consultation process.
This timetable relates to how the RAs plan to consult and make a decision relating to the proposals CMC_04_20 and CMC_06_20 only.
These proposals relate to:
- CMC_04_20 – Providing greater flexibility for New Capacity to combine Candidate Units into a single Capacity Market Unit
This modification proposes an amendment to the requirements for Combining Candidate Units into a Capacity Market Unit in section E.7.6 of the CMC such that New Capacity can combine Candidate Units into a single Capacity Market Unit without being subject to the same restrictions as Existing Capacity.
- CMC_06_20 – Combining Capacity Units into a Capacity Market Unit - Proposed Changes
This modification proposal also seeks changes to section E.7.6 – Requirements for Combining Candidate Units into a Capacity Market Unit to allow Demand Side Units and aggregated generation units to combine candidate units into a capacity market unit.
Were these proposals to be approved and implemented, they would have an impact on the processes involved with qualifying to participate in a Capacity Auction.
The Qualification process for the T-4 CY2024/25 Capacity Auction is due to begin in June 2020. Within this being the case, the RAs deem it prudent to consult on these proposals to ensure any negative impacts on the qualification process for this auction would be avoided.
Today, 22 April 2020, the RAs have published the CMC modification timetable for these proposed modifications.
As set out in the timetable the RAs also intend to proceed to the consultation process on 22 April 2020.