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Current± Briefings: What impact is the energy crisis having on the Capacity Market?

A target volume of more than 5.36GW was set for the T-1 auction in response to high power prices. Image: Getty.

A target volume of more than 5.36GW was set for the T-1 auction in response to high power prices. Image: Getty.

In the first Current± Briefing webinar of 2022, EnAppSys’s director Paul Verrill joins us to discuss how rising power prices have impacted the capacity market.

The T-1 auction target was announced in January, and in a shock move was set at higher than the pre-qualified capacity, meaning all the capacity is set to clear at the maximum price of £75/kW/yr.

Setting out the target, energy secretary Kwasi Kwarteng explained the unprecedented move “reflects the broader uncertainties within the power sector".

High gas prices and market volatility have led to an energy crisis that is filtering into all aspects of the sector in the UK. Balancing market costs were up 192% in November, the price cap was increased by 54% by Ofgem and 27 suppliers collapsed in 2021.

With predictions that energy price volatility will last until 2030 at least, how market mechanisms and services react will be key to protecting customers and bolstering companies in coming years.

In the latest in our Current± Briefings series, dubbed What impact is the energy crisis having on the Capacity Market?, we take a look at Kwarteng’s move to shore up capacity commitments, and ask how that will protect energy security amidst high power prices and the cost of the move for the consumer.

The webinar follows on from Current± launching the series in 2021, holding a number of sessions that looked at the P375 balancing and settlement code modification, the future of Dynamic Containment and vehicle-to-grid technology.

Current± Briefings: What impact is the energy crisis having on the Capacity Market? will take place at 3pm GMT, on 23 February 2022. To register for the event, click here.

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