|
|
<p>The key mechanisms being introduced as part of electricity market reform are the capacity market and contracts for difference (CfDs).</p><p>Generation, storage and demand side response capable of contributing to security of electricity supply will be eligible to participate in the capacity market, with the exception of capacity in receipt of low carbon support such as the renewables obligation or CfD. This would permit hydrogen and fuel cells to compete alongside</p><p>other resources. On contracts for difference, inclusion of new technologies would require evidence to be provided to the Secretary of State for Energy and Climate Change, the right hon. Member for Kingston and Surbiton (Mr Davey), that the technology is low carbon, will make a significant input into decarbonising electricity generation and would support security of supply. It will also be necessary to provide evidence of the levelised costs of the technology to allow a judgment about the level of support required. It will then be for the Secretary of State to decide whether the technology should be added to the mix of technologies supported by the CfD.</p><p>Fuel cell micro CHP systems of 2 kW or less are currently eligible for support under the feed-in tariff scheme. There is a pilot, limited to the first 30,000 systems, for sub 2 kW micro CHP in general.</p> |