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<p>DECC, National Grid and Ofgem have been working together to explore options to provide additional safeguards against the increased risk to mid-decade security of electricity supply.</p><p>To this end, National Grid is currently consulting on new system balancing services which, if approved by Ofgem, would enable National Grid to procure additional capacity in the winter of 2014-15 and 2015-16. To ensure economic efficiency the amount of capacity needed would be procured through a competitive process. This would offer opportunities for plant which might otherwise have closed or which is currently mothballed, but does not seek to target or favour any one particular plant.</p><p>In addition, the Capacity Market will be initiated in 2014, subject to state aid approval. This will ensure sufficient capacity is available in the medium term, and will also seek to incentivise participation of the most economically efficient plant, which could include plant that is currently mothballed.</p><p>RWE closed its Fawley oil-fired plant in March 2013. The current generating potential of the power station is a matter for the company.</p> |