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Capacity Market shift towards a localised energy industry raises gas network questions

Professor Michael Grubb argues that major capital-intensive energy assets such as nuclear power plants are effectively government projects and should be planned and funded as such (see box, p6). Now outcomes from the Capacity Market auctions suggest that as small, fast-build projects play an increasing role in the power sector and win contracts in the “technology neutral” Capacity Market, even large gas-fired plant may need specific government support of the type needed by nuclear.

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