Electricity Security and Decarbonisation: Government Responses - 6th May 2025

Michael Shanks (Labour)

I am tabling this statement to inform Members of two publications relating to the capacity market. Both publications are Government responses to the recent consultation and call for evidence on proposals to maintain our electricity security and enable flexible capacity to decarbonise. This supports our goals of making Britain a clean energy superpower by 2030 and accelerating progress to net zero.

The Government are committed to delivering clean power by 2030 and accelerating progress towards net zero, while ensuring the security of supply. Making Britain a clean energy superpower by 2030 is one of the Prime Minister’s five missions. Being on track for clean power 2030 is the Prime Minister’s plan for change milestone for this Parliament.

The Government response published today reiterates our intention to ensure that unabated gas plants can decarbonise once low carbon flexible technologies are available. We are introducing two further CM reforms:

New decarbonisation readiness legislation comes into effect from February 2026 and will ensure that all substantially refurbishing and new combustion plants are built decarbonisation-ready. We will modify the CM to ensure that all plants prequalifying for the CM in 2025 that would be captured under the new DR legislation commit to comply with the DR requirements.

We will introduce a first managed exit pathway to enable unabated gas generators with multiyear CM agreements to exit early without penalty and transfer to bespoke support, facilitating decarbonisation by retrofitting carbon capture.

We are also publishing a Government response to the CM call for evidence, which aimed to inform further option development to support the decarbonisation of unabated gas and the approach to developing longer-term views of future capacity requirements and supply. This Government response summarises the feedback received.

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