Capacity Market Code Urgent Modification – CMC_11_22 Timetable The Capacity Remuneration Mechanism (CRM) is a competitive element of the Single Electricity Market designed to ensure electricity security of supply across the island of Ireland. Competitive auctions secure the necessary capacity to meet demand for delivery in a specified year. Following the decision by the SEM Committee on 11 August 2022, this modification introduces a downward adjustment to de-rated capacity for Candidate Units with a limit on their annual run hours, initially to apply only to New Capacity. The current Capacity Market de-rating process does not distinguish between a project that can run continuously for the whole year and one that has restricted running. This modification introduces a downward adjustment to de-rated capacity for Candidate Units with a limit on their annual run hours. It uses analogous drafting to that employed for daily run hour limits for storage and DSUs. Like current interconnector de-rating, it will compound an additional de-rating factor to the marginal outage-based de-rating factor to produce an effective de-rating factor. To comply with the SEM Committee Decision this proposal is to be implemented for the forthcoming 2026/27 T-4 Auction. Section B.12 of the CMC sets out the Modifications process and contains details in regards to submitting a proposal, the process of discussing proposals through Working Groups and the consultation and decisions process. As per B.12.9.5 of the CMC, the RAs have deemed this proposal to be Urgent and have instructed the System Operator to convene an Urgent Working Group, which will take place on Wednesday 17 August 2022. During this Working Group the proposal relating to CMC_11_22: De-rating for Annual Run Hours Limits is to be presented. As required under the code, the RAs have today, 15 August 2022, published the timetable setting out how the RAs plan to consult and make a decision relating to the proposal. As set out in the timetable, the RAs intend to consult on the modifications from 18 August – 25 August 2022. |