Electricity Peaking Stations
Electricity peaking stations, also called peak-lopping plants, are power plants designed to help balance the fluctuating power requirements of the electricity grid that run on mains and stored natural Gas.
Peaking stations typically operate in standby mode, and then when there is a peak in demand for power from the electricity grid the gas engines receive a signal to commence operation. Due to their flexibility and robustness they are able to provide a rapid response to fluctuating demand.
Capacity Market and STOR
In the UK peaking stations function primarily in the Short Term Operating Reserve (STOR) market. This has since been expanded to include the Capacity Market.
The Capacity Market aims to balance the mismatch between demand and supply maximising the utilisation of the existing generation capacity. Generators that opt to work in the Capacity Market receive a steady revenue stream in the form of capacity payments that enables them to invest in new power generation assets. There is also a capacity obligation that requires generators to be able to deliver electricity when needed or face a penalty charge.
