Post: T-4 Capacity Market clears at £60/kW/year

T-4 Capacity Market clears at £60/kW/year

The T-4 Capacity Market auction for 2028-29 Delivery Year has cleared at £60.00/kW/year.

Originally Clearing at a range of £60/kW to £65/kW in Round 3 of the auction on 11 March, the price of £60.00 /kW/year was just below last year’s record breaking £65/kW/year. 43.1GW of capacity has been procured across 669 CMUs of which 3.8GW was from new build generators, compared to the target of 43.7GW.

Existing CMUs and Proven DSR CMUs made up 81% of the Capacity entering the auction. New Build CMUs and Unproven DSR CMUs amounted to 19% of total Capacity entering the Auction. Of the Total Capacity Awarded, Existing Generating was awarded 53% of the total Agreements, New Build was awarded 19% and DSR was awarded 25%.

Providing pre-qualification services prior to the deadlines, enabling projects to meet project-specific milestones, and facilitating the bidding strategies across both the T-4 and T-1 Auction’s GridBeyond supported our clients to achieve over 407MW of agreements in this latest T-4 auction and 298MW of agreements in the most recent T-1 auction.

Source: NESO

In a letter to National Grid ESO, published on 11 February, the government confirmed that the parameters for the upcoming Capacity Market (CM) auctions. The government accepted the recommendation to increase the T-1 auction target set in July 2024 by 1GW to account for technical considerations and expected non-delivery. The auction target for the T-1 auction for delivery in 2025-26 has been set at 7.5GW. The T-4 auction target has been set at 43.7GW for the 2028-29 delivery year, with 1GW set aside for a future auction.

Providing pre-qualification services prior to the deadlines, enabling projects to meet project-specific milestones, and facilitating the bidding strategies across both the T-4 and T-1 Auction’s GridBeyond supported our clients to achieve 298MW of agreements in this latest auction. The T-4 auction for the 2028-29 Delivery Year begins on 11 March.