Record capacity secured in T-1 auction

The latest Capacity Market auction for one-year ahead availability has cleared at the lowest price for five years.

The auction, which cleared at £20.00/kW/year, also saw the highest ever level of capacity secured at more than 7.9GW across 246 Capacity Market Units (CMUs), according to provisional results released by the National Energy System Operator (NESO).

Prices in the T-1 auction had peaked at £75/kW/year in 2022. The latest figure is around 45% lower than last year’s.

Battery energy storage system capacity secured more than 9.15% of the total awarded.  Nuclear generation (3.63GW) secured the most capacity, followed by gas generation and demand-side response.

The T-4 auction to secure capacity four years ahead of delivery will take place next week.