The SEM Committee is today, 23 November 2023, publishing a consultation paper on a Proposal to Introduce Intermediate Length Contracts.
The consultation follows the Information Note (SEM-23-083) published on 17 October 2023, where the SEM Committee asked the RAs to develop a policy to implement a refurbishment category within the Capacity Auction Exception Application process, with the intention that the policy will be made available to exception applicants within the T-4 2028/2029 Capacity Auction.
The RAs are considering the introduction of an intermediate length contract for intermediate levels of investment (i.e. less than the New Capacity Investment Rate Threshold (NCIRT)) for both Existing and New Capacity.
The consultation poses a number of questions, including in regard to the appropriate maximum duration for intermediate length contracts, the appropriate Investment Rate Threshold for units to be eligible, and how the design of intermediate length contracts could promote investment in low carbon technologies.
Following consultation, if the RAs decide to proceed with the introduction of intermediate length contracts, the RAs will consult on CMC drafting changes necessary to implement any policy changes, with a view to implementing any necessary CMC modification(s) prior to the issue of relevant operational process documents for the T-4 2028/29 Capacity Auction.
Responses to the consultation paper must be sent to both the CRU and UR CRM Submissions inboxes (CRMsubmissions@cru.ie & CRMsubmissions@uregni.gov.uk) by no later than 17:00 on Thursday 21 December 2023.
See the full consultation paper on the publication section of our website.