Appearing in front of the Energy and Climate Change select committee (ECCC), Davey said that interconnectors are set to take part in the second capacity auction “if we can make the technicalities work to enable interconnection supply to feed into the capacity market.”
Davey also said that while the Department of energy and Climate Change (Decc) was keen for interconnectors to be included in the first capacity auction in 2014, there were difficulties in making the process work within the European single energy market framework.
“We did come up with what we thought was an ingenious package which would have enabled that, but it didn’t work as well as we hoped technically with the single energy market and therefore we felt, and the Commission felt, we couldn’t proceed with it,” he said.
“Although our design for enabling interconnectors to bid into the capacity market wasn’t going to be ready for next year, we hope and believe and want it to be ready for the second capacity market.”
Davey also stated that interconnectors would take part into the standard capacity auction, opposed to a “sub-auction” because “interconnection is more of a standard capacity because at the other end of the pipe there is a power station of some sort”.
The energy secretary added: “We aren’t as interconnected to the continent, and indeed to our other neighbours, as I would like and I think it is sensible for pushing down on prices and improving energy security more generally.”