| answer text |
<p>National Grid’s Future Energy Scenarios 2018 has been used to analyse peak demand
scenarios for the Capacity Market. The Capacity Market secures the electricity capacity
required to meet peak demand in a range of scenarios. The targets for Capacity Market
auctions are set annually for the delivery year four and one year ahead. These targets
are based on advice from National Grid and our Panel of Technical Experts, which uses
the analysis in the Future Energy Scenarios.</p><p> </p><p>With regard to the distribution
network companies, Ofgem’s regulation takes account of potential increases in demand.
In addition, BEIS and Ofgem published the Smart Systems and Flexibility Plan in July
2017. This signalled the move to Distribution System Operators where network companies
are more actively managing their networks to deal with increasing levels of distribution-connected
generation and increasing demand from, for example, electric vehicles and heat pumps.</p>
|
 |
