Post: GridBeyond secures 264MW  in T-4 Capacity Market auction

GridBeyond secures 264MW  in T-4 Capacity Market auction

The provisional results of the T-4 2027-28 Capacity Market auction were published on 27 February with a total of 42,831MW in capacity agreements awarded to capacity market units at a record high clearing price of £65/kW.

Launched in 2014, the Capacity Market is a mechanism introduced by the government to ensure that electricity supply continues to meet demand by offering to pay providers for making supplies available at short notice. The latest T-4 auction cleared in Round 2 with 42.831GW procured (lower than the target procurement capacity of 44GW) across 540 CMUs. GridBeyond cleared 264MW, including 12.2MW of long duration new build units.

By fuel type the majority of the awarded capacity will come from:

• Gas (66.97%),
• Interconnector (15.38%)
• Pumper storage (4.38%)
• Demand side response (2.64%)
• Battery storage (2.37%)

Separately the T-1 Capacity Market auction cleared at £35.79/ kW/year. GridBeyond has secured 254MW – the largest T-1 position for demand side response – in the auction, which took place on 20 February. In total, 7.6GW of capacity was awarded across 277 capacity market units.

Mark Davis, GridBeyond Managing Director for UK and Ireland commented:

“Flexibility plays a crucial role in our electricity system and these auctions are increasingly beginning to shape what our power system could look like towards the end of the decade. But it’s essential that they begin to deliver capacity at scale that is either low-carbon or capable of rapid decarbonisation.

“The aim behind the Capacity Market is to provide an incentive for generators to invest in assets that can provide guaranteed capacity when called upon or face penalties. The auction falling short of its target capacity reinforces the need to push forward with the next generation of flexible energy assets.

“Through our Capacity Market Clearing House GridBeyond has supported a large number of clients and generators in matching short or long positions regarding their capacity obligation so that they avoid the penalties that the delivery body can bestow whilst also optimising their revenue opportunities.”