Capacity Market T-4 auction sees lower clearing price

The latest T-4 Capacity Market auction saw record amounts of demand-side response and battery storage secure contracts.

The provisional results of the auction to secure capacity for delivery in 2028/2029 saw a total of 43.1GW procured across 669 Capacity Market Units at a clearing price of £60/kW/year, down from last year’s record of £65/kW/year.

Gas generation was awarded the lion’s share of contracts. More than 100 battery energy storage system (BESS) units were awarded a total of 1.782GW of capacity.

Existing generation was awarded 53% of the total agreements, new build 19% and demand-side response 25%.

The earlier T-1 auction for one-year ahead availability cleared at £20.00/kW/year, the lowest price for five years.