Capacity market auction clears at 77p


The T-1 capacity auction for delivery next winter has cleared at 77p/kW. Some 129 units have been awarded an agreement, totalling 3.6GW of capacity.

By volume, reciprocating engines (gas recips) took the largest number of agreements (19 to existing engines, 26 to new build); CHP took the next largest number of agreements (29 existing plants and one new build).

The auction results do not make great reading for demand-side response (DSR), with swathes of units from Eon, EDF, Enel X, Flexitricity, Grid Beyond, Kiwi Power, Scottish Power, Smartest Energy and UK Power Reserve dropping out as the price plummeted.

Some 29 DSR agreements for around 200MW were awarded to DSR providers, with Limejump taking just over half of them.

The clearing price was also a turnoff for storage, with just 6 projects, totalling 22MW, taking agreements.

The Capacity Market is currently suspended following a legal challenge by Tempus Energy that was upheld by the European Court of Justice.

The government hopes to reinstate the market this year or next.

See details on the T-1 auction results here.

Related stories:

Government plans T-3 CM auction, renewables in play

Payments voluntary while CM suspended, says Beis

Ofgem outlines capacity market changes

Ofgem rejects plan to collect CM payments during suspension

Government details next steps for summer Capacity Market auction

Tempus launches fresh Capacity Market action, goes after the money

Sara Bell: Aggregators ‘ecstatic’ about CM legal ruling

What has the Capacity Market ever done for us?

Tempus wins Capacity Market court case

EMR delivery body confirms all capacity payments suspended, auctions shelved

Tempus Energy: A five year old can see the Capacity Market is anticompetitive, the billion won’t be paid

Decc “confident” of beating Tempus legal challenge

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  1. You write”the government hopes to reinstate the capacity market this year or next.” That really is a big change from its official reaction immediately after the ECJ ruling last November, when reinstatement was reckoned to be feasible by early in 2019.
    Is this because Government officials have now actually bothered to read the ECJ’s judgement, and appreciate that the problems are far from just minor procedural ones?


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