The Department for Energy Security and Net Zero (DESNZ) has accepted recommendations to increase the forthcoming one-year ahead (T-1) and four-year ahead (T-4) auction targets to 0.3GW and 0.5GW respectively.
Secretary of state for energy security & net zero Claire Coutinho confirmed the acceptance of recommendations put forward by Fintan Slye, director of National Grid ESO in an open letter published yesterday (30 January).
The recommendations were set out in a report to the secretary of state published 12 January.
According to the open letter the T-1 auction target will be increased by 0.3GW to “account for technical situations” increasing the target to 7.7GW for the 2024/25 auction. Similarly, Coutinho confirmed that “technical situations” informed the decision to increase the T-4 target by 0.5GW, taking the capacity target for the 2027/28 auction to 45GW. Consequently, Coutinho confirmed she had “decided to set the T-4 auction target at 44.0GW and to set aside 1GW for the future T-1 auction.”
The final auction parameters for T-1 and T-4 Capacity Market auctions are as follows:
|T-1 auction for delivery in 2024-2025
|T-4 auction for delivery in 2027-2028
Minimum capacity at price cap
Maximum capacity at £0
|3 hours LOLE
|3 hours LOLE
|Price taker threshold
|15-year agreement threshold
|3-year agreement threshold