THE OPENING OF THE CAPACITY MARKET WILL IMPACT “CONTRIBUTION”/NEW ELECTRICITY

THE OPENING OF THE CAPACITY MARKET WILL IMPACT “CONTRIBUTION”/NEW ELECTRICITY

    ◆ Prevents the need to offload/shift the burden of fees

     Attention has focused on the move by new utilities regarding "capacity contribution" payments that will begin in fiscal 2024 with the opening of the capacity market. Concerned about the impact on their businesses, some new utilities are taking steps to ease the burden or pass it on to their electricity bills. On the other hand, it has been shown that the impact of capacity contributions on business performance is small compared to price fluctuations in the wholesale electricity market so confusion can be avoided. (Yuki Tsujimura)

    The capacity market buys and sells future supply capacity.

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