Average day-ahead, within-day and system prices in Q1 2022 all more than tripled compared to Q1 2021 as a result of the Russian invasion of Ukraine, EnAppSys has found.
The energy crisis in the UK is contributing to record clearing prices in the Capacity Market (CM), with the mechanism’s design in turn exacerbating tight capacity margins, EnAppSys director Paul Verrill has said.
The T-4 Capacity Market auction has cleared at a record high of £30.59/kW/year, due largely to the decommissioning of old assets and higher capacity needs.
We’re pleased to announce that EnAppSys’s director Paul Verrill is joining us for the first Current± Briefing webinar of 2022 to discuss the impact of the energy crisis on the Capacity Market.
A colder than normal Q1 2021 and low wind generation in the summer across Europe exacerbated Britain's energy crisis, according to energy market data analyst EnAppSys.
The government has set the forthcoming T-1 Capacity Market auction target volume at more than 5.36GW in response to what it has described as “broader uncertainties within the power sector”, meaning all participating assets in the auction are set to gain contracts at the maximum price of £75/kW per year.
Prequalification results for the T-4 and T-1 Capacity Market auctions have been released, with battery storage rising significantly in both.
Day-ahead power prices in Great Britain rose to £2,000/MWh in the N2EX auction for 17:30 on 15 November, according to EnAppSys.
High power prices are expected to continue into winter following a record breaking third quarter in the UK.