DESNZ has accepted National Grid ESO's 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.
Longer term market signal are the key focus of this week’s edition of Current± Price Watch – powered by Enact – taking a look at the T-4 Capacity Market results, the new default tariff price cap and incoming weather fronts.
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.
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.
The target for the T-4 2025/26 Capacity Market auction is to remain broadly in line with its predecessors, while the T-1 2022/23 target has risen compared to 2021/22.
