Capacity Market: Hydrogen to Power and Interconnectors
This consultation is open for responses
Respond to this consultationSummary
DESNZ seeks views on allowing hydrogen-to-power generation into the Capacity Market and on revising interconnector de-rating factors. The consultation runs through early 2026 with decisions expected before the next capacity auction. This would expand the technology mix eligible for capacity payments beyond current fossil and renewable generators.
Why it matters
Hydrogen-to-power entry creates a new competitor for capacity payments, potentially reducing clearing prices for existing generators. The interconnector de-rating review could increase their capacity credits, reducing the overall capacity requirement and further pressuring domestic generation revenues.
Key facts
- •Consultation covers hydrogen-to-power categorisation for Capacity Market participation
- •Reviews interconnector technical reliability methodology for de-rating factors
- •Links to Clean Power 2030 delivery timeline
Timeline
Areas affected
Related programmes
Memo
The security of our electricity supply is key to the successful delivery of the Clean Energy Superpower Mission and one of its key pillars - clean power by 2030. In this call for evidence, the government is seeking views on how to categorise Hydrogen to Power to inform potential changes to the Capacity Market to enable participation. The government is also seeking views on a new approach for determining the technical reliability of interconnectors for the purpose of setting their de-rating factors.