The diesel dilemma: “dirty” generation in the capacity market

“Dozens of dirty diesel generators”. Hardly the headlines the government was hoping for when it set up the capacity market. Yet, when the second auction came to a close this winter, it once again became clear that small scale diesel generators had ended up among those subsidised. The cost this time? £176 million on small scale diesel generation over 15 years - even more than the £109 million in the first auction. Experts have told Utility Week that without changes to the market it could be even worse in the next round.

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