Evaluation of the Transitional Arrangements Phase 4 - Final Report

This document describes an evaluation of the second Transitional Arrangements (TA) scheme within the UK's Capacity Market, focusing on turn-down Demand Side Response (DSR). The scheme aimed to enhance growth, decarbonization, and energy security by facilitating DSR participation and market access for smaller providers. A realist and theory-based methodology, including data analysis, interviews, and surveys, was used to assess the scheme's outcomes and value for money. The evaluation found an increase in DSR procurement, with industrial sites as main contributors, but also identified the scheme as costly and administratively burdensome. While the second TA attracted new clients and encouraged investment in DSR, experienced providers saw limited benefits. The future of turn-down DSR in the market depends on clearing prices and the ability to combine revenues from multiple services. Recommendations for promoting DSR participation are provided, considering external factors that may affect its growth. **This summary was written by an AI model and therefore should not be considered a definitive summary of the report. If you are aware of inaccuracies, please email evaluation.registry@cabinetoffice.gov.uk.**

Description

• Lead department: Department for Business, Energy & Industrial Strategy
• Evaluation stage: A complete evaluation report
• Other departments: No other departments listed
• Evaluation types: Value for money evaluation; Impact evaluation; Process evaluation
• Impact methods: Theory-based methods
• Theory-based methods: Other
• Process methods: Case studies; Individual interviews
• Value for money methods: Other
• Grant information: This intervention is not distributing funding via a grant
• Government Major Project information: This intervention is not a major project
• Policies: No policies provided

Event Dates

• Event Name: Publication of final results
• Event date: May 2019

Evaluation Costs

• Cost: Not provided

Evaluation sharing

• Link(s) to published report(s): Yes
• Links to evaluation plans: No link provided
• Findings: Not provided
• Permission to share confirmed: Yes