Capacity Market
Last week the Government authorised the procurement volumes for the Capacity Market auctions to be held in February. While Kwasi Kwarteng accepted National Grid ESO’s recommendation for the T-4 auction to be held on 22 February, he decided to authorise a T-1 volume 650 [...]
March saw the latest capacity market auctions: the T-1 auction for delivery in 2021/22 was held on the 12th and the T-4 auction for 2024/25 was concluded on 22nd. The assets leaving the auction compared with those succeeding highlight changes that are taking place [...]
There are signs of squeezed power market supply and demand margins. Last week saw National Grid ESO issue two Electricity Margin Notices (the new name for the Notice of Inadequate System Margin, or “NISM”), warning of a potential shortfall in electricity generation in the [...]
Since the capacity market was authorised to re-start last October, following its suspension, there have been three auctions: a T-3 auction for the delivery year 2022/23, replacing the missed T-4 auction, a T-1 auction for 2020/21 and a T-4 auction for 2023/24. Capacity market [...]
The June 2019 capacity auction for delivery next winter cleared at the record low price of 77p /kW, with 129 units securing contracts covering 3.6 GW of capacity. The previous T-1 auction in February 2018 cleared at £6 /kW for 5.8 GW of capacity, [...]
Ofgem has launched a consultation into proposed changes to the Capacity Market (“CM”) rules, which aim to simplify the market and reduce complexity which Ofgem feels may be acting as a barrier to entry and inhibiting competition. There are also proposals to improve the [...]
Almost out of the blue, last week, while all attention was on Brexit, came a decision from the General Court of the European Union that has led to the suspension of the GB Capacity Market. This means that all capacity payments are on hold, [...]
Last Friday, the T-4 capacity auction for 2021/22 closed at a record low price of £8.40 /kW/year, far below the pre-auction forecast of £17-25 /kW/year, with the Net Welfare Algorithm once again setting prices. 74 GW of de-rated capacity bid with just over 50.4 [...]
Last week saw the first T-1 capacity auction since the GB capacity market launched, clearing in the 14th round of bidding at £6 /kW/year. 10.7 GW of de-rated capacity entered the auction, with 5.8 GW of that being successful in securing contracts. Added to [...]
The early capacity auction designed to secure security of supply for 2017/18 has entered its fourth day, with the price having dropped to £15 /kW by the end of yesterday’s round, some way below the expected clearing level of around £20 / kW and [...]