It's good news for low carbon response generation and storage, as data released by DECC shows that almost 5GW of fossil fuel generation capacity looks set to miss its implementation deadlines, paving the way for more new entrants into the capacity market in the impending auction process. 

Despite imminent emissions curbs, diesel gen-sets are expected to still be popular, with Combined Cycle Gas Turbines and various storage technologies also likely to increase their share of the response market. 

The REA comments that, with some small changes, the capacity market mechanism could have been a good catalyst for storage deployment. We are not necessarily convinced that longer term contracts are the answer in all cases - what is needed is flexibility for those with dispatch control over storage assets to play properly in different markets without being penalised with unfair charging.  The capacity market can play one part in this, but failing to see the potential benefits of income layering could lead to a short-term perspective.