CAPACITY MARKET
The Capacity Market supports security of electricity supply by awarding agreements to eligible capacity that can be available when the system needs it.
Successful Capacity Market Units receive capacity payments in return for meeting obligations, including availability during system stress events. Auctions, delivery years and agreement lengths have defined rules and milestones.
Before an auction, the unit must demonstrate that it fits an eligible class and meets the evidence, metering, connection and delivery requirements. Smaller assets may participate through an aggregation structure where the rules allow.
A battery cannot discharge indefinitely. De-rating reflects the security-of-supply contribution expected from storage with a particular duration and other characteristics. Connection capacity, declared capacity and performance obligations also matter.
Multiplying the battery's nameplate MW by a headline auction price can materially overstate value. Use the applicable de-rated capacity, auction outcome, fees, obligations, penalties, aggregation terms and expected availability.
PLAIN-ENGLISH FAQ
Potentially, if the unit and its arrangements meet the relevant eligibility and prequalification requirements for the intended delivery year.
It converts nameplate capacity into a capacity value that reflects the technology's expected contribution during system stress.
Aggregation can be relevant, but the structure, minimum thresholds, metering and component-level evidence need to be checked for the current rules.
NEXT STEP
Battery Boost compares the asset, connection and objectives before identifying suitable optimisation and route-to-market options.
EXPLORE THE VALUE STACK
Build a credible value stack across site savings, trading and grid services.
Read guide FAST RESPONSEUnderstand DC, DR and DM — and what participation requires.
Read guide MARKETSWholesale, intraday, Balancing Mechanism and automated arbitrage.
Read guide LOCATIONDFS, DNO flexibility and location-dependent constraint services.
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