The scheme was built at a time when responsibility for electricity generation in England and Wales was in the hands of the government's Central Electricity Generating Board (CEGB); with the purpose of providing peak capacity, very rapid response, energy storage and frequency control. Dinorwig's very rapid response capability significantly reduced the need to hold spinning reserve on part loaded thermal plant. When the plant was conceived the CEGB used low efficiency old coal and oil fired capacity to meet peaks in demand. More efficient 500 MW thermal sets were introduced in the 1960s, initially for baseload operation only. Dinorwig could store cheap energy produced at night by low marginal cost plant and then generate during times of peak demand, so displacing low efficiency plant during peak demand periods.