CRM auction: age isn’t everything

Media reports in Ireland and Northern Ireland are raising concerns over the possibility of power plant closures. The threatened shutdowns arise due to the outcome of the T-1 Capacity Remuneration Mechanism (CRM) auction. The closures may commence as early as May 2018 if the coverage is to be believed.

How these rumoured dates interact with the Grid Code requirement in Ireland and Northern Ireland for a three year notice period prior to plant closure remains to be seen. The Commission for the Regulation of Utilities (CRU) noted regulatory intervention may be required where a plant deems itself unable to meet the three year period. In its statement on the CRM auction outcome, the Utility Regulator (UR) stated that AES were seeking early closure of the Kilroot plant.

As this week’s blog shows, while age could be linked to plant losing in the auctions, it is not the only possible explanatory factor.

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