Posted on: 10/07/2018
The Government has detailed plans for the next Capacity Market auctions to ensure security of supply in the years ahead.
The Department for Business, Energy and Industrial Strategy (BEIS) is looking to procure 46.3GW of reserve electricity capacity through the upcoming 2022/23 T-4 auction and a further 4.6GW in the 2019/20 T-1 auction.
The auctions have a price cap of £75/kW per year and a price take threshold of £25/kW per year has been set for both.
The auctions are expected to take place on 29 January 2019 (T-1) and 5 February 2019 (T-4).
Move follows NG recommendations
The BEIS announcements follows recommendations made by National Grid in its annual electricity capacity report.
The previous T4 capacity market auction earlier this year cleared at a record low price of £8.40/kW, compared to between £18 and £22.50/kW for previous auctions.
Existing large thermal plant secured the bulk of the capacity.