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Electricity Capacity Market

Electricity Capacity Market Fossil Fuel Emissions Verification

What is the Capacity Market?

The Capacity Market (“CM”) is a mechanism to ensure security of electricity supply in Great Britain and was established by the government in 2014. As part of the development of the market the government introduced a scheme whereby applicants must prove, via a Pre-qualification exercise, that their emissions are below a particular threshold. (This ensures that as well has having continuity of supply we can be sure that the electricity has a clean origin).



What is a CMU?

CMUs are the units of electricity generation capacity.

What is pre-Qualification?

In order to participate in Capacity Auctions, prospective Capacity Providers ("Applicants") must first prequalify. The prequalification window runs from around July to September each year. The first window was expected to be in 2022 but this has been pushed back to 2023 to enable the scheme to be developed correctly.

What are Fossil Fuel Emission Limits (FFEL)?

The government introduced emissions limits to the CM in 2020 in respect of all Fossil Fuel Components. All Applicants seeking to prequalify Fossil Fuel Components for entry into the Capacity Auctions are required to demonstrate that these Components comply with the Emissions Limits.

Two emissions limits apply to capacity which uses Fossil Fuels to produce electricity:

  • 550g of CO2 of Fossil Fuel origin per kWh of electricity generated ("the Fossil Fuel Emissions Limit");
  • 350kg CO2 of Fossil Fuel origin on average per year per installed kWe ("the Fossil Fuel Yearly Emissions Limit").

What is a Fossil Fuel Emissions Declaration?

Applicants seeking to enter the market are required to submit a Fossil Fuel Emissions Declaration demonstrating compliance with the Emissions Limits in order to prequalify.

The template for a Fossil Fuel Emissions Declaration is a standard form Exhibit ZA

What is an Independent Emissions Verifier (IEV)?

Fossil Fuel Emissions Declarations need to be verified by an Independent Emissions Verifier (IEV) prior to submission. As a prerequisite for applying to be accredited as an IEV, it is necessary to be certified by UKAS under ISO 14065 for the relevant scope.

The IEV conducts the following tasks:

  • verify that the formulae applicable relative to the prequalification year declared by the applicant have been used
  • verify that the correct formulae have been applied in respect of the relevant Generating Technology Type
  • verify that any calculations have been performed correctly
  • verify that calculations have been performed on the basis of accurate and appropriate data sources
  • where applicable, verify the accuracy of the metering methodology and equipment used to measure captured and transferred CO2

Why use Lucideon?

Lucideon CICS is accredited by UKAS for this work. We have a large team of experienced EU-ETS and UK-ETS auditors who are fully competent and experienced to perform this verification. The Lucideon approach is robust and pragmatic and provides a clear verification process for both your "simple" and "complex" sites.