Evaluation of the Transitional Arrangements for Demand Side Response Phase 2

This document describes an evaluation of the Transitional Arrangements (TA) within the Capacity Market (CM) aimed at improving electricity supply security and supporting Demand Side Response (DSR) and small-scale generation. The evaluation, conducted by consultants for the Department for Business, Energy and Industrial Strategy (BEIS), used a realist and theory-based approach, including analysis of the CM register, surveys, interviews, and case studies. The findings show that while nearly a quarter of contracted capacity was lost during testing, mainly due to metering and testing challenges, the TA still contributed significantly to the capacity available to the National Grid. The TA also influenced investment decisions by combining revenues with other streams. However, participants faced difficulties, especially aggregators in recruiting clients and dealing with complex CM rules. The evaluation suggests that the TA was beneficial as a pilot for the main CM and encouraged new turn-down DSR, but improvements are needed to overcome participant constraints and barriers. **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
• Impact methods: Theory-based methods
• Theory-based methods: Contribution tracing
• 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: December 2017

Evaluation Costs

• Cost: Not provided

Evaluation sharing

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