Chart of the week | What might compete in upcoming Capacity Market auctions?

The next round of Capacity Market (CM) auctions are set to take place in March 2021, starting with the T-1 (Delivery Year 2021-22) on 2 March followed by the T-4 (Delivery Year 2024-25) on 9 March. The prequalification window for these auctions have been open since 20 July 2020 and will close on 11 September, with prequalification results scheduled to be published on 6 November.

In this Chart of the week, we examine the potential technology mix that could enter the T-4 auction in March 2021 and compare it to the previous T-4 auction.

Lee Drummee

Lee Drummee

To keep reading, please log in to your account

Log in
Contact us

Related thinking

Low carbon generation

“Ooh, a storm is threatening, My very [interconnection] today”: Can states utilise interconnection to share wind resources?

Penetration of renewables continues to dominate the energy news, as we saw renewables as a proportion of total demand reach new heights this week to a new record of ~70% penetration. In light of this continuing march toward a renewable-dominated grid (building on some analysis we did in Chart of...

Low carbon generation

“If I don’t get some shelter, ooh yeah, I’m gonna fade away”: How much firming is needed for wind?

In the last week, renewable generation in SA has varied from 126% of local demand to only 0.6%. During this period of low wind in the state, SA was importing ~600MW from Victoria. At that same time, renewables were thankfully generating 34% in VIC, along with brown coal pretty much...

Energy storage and flexibility

Out with the old, in with the new: T-4 Capacity Market clears at record price

On 21 February, the T-4 Capacity Market auction for Delivery Year 2026-27 cleared at a record high price of £63.00/kW/year, procuring 43,000.955MW of capacity. In this week’s 'Chart of the week', we explore the key takeaways from the auction.

Power and gas networks

Push to meet renewables targets intensifies charging differences in GB

Higher transmission costs for generators in Scotland have been a feature of the GB electricity market since the introduction of cost reflective pricing, but with the ambition to increase generation levels from offshore and onshore wind and meet Net Zero generation targets, this is likely to increase. In this week’s...

Business supply and services

The first month of the EGL against a backdrop of falling wholesale prices

The end of January means the end of the first month of the Electricity Generator Levy (EGL). First announced as part of the Autumn 2022 budget, the EGL places a 45% tax on generation receipts above £75/MWh for non-Contracts for Difference (CfD) renewable and nuclear generators until March 2028. In...

Low carbon generation

Building up the road to the coast – can we deliver energy from Gippsland’s offshore wind?

On 19 December 2022, the Federal Minister for Climate and Energy officially declared the area in Bass Strait off the Victorian Gippsland Coast suitable for offshore wind. The declared area covers approximately 15,000 square kilometres, from Lakes Entrance in the east to south of Wilsons Promontory in the west. Based...

Energy storage and flexibility

Record renewables pipeline: will investors reconsider after UK proposes green revenue cap?

News this week that the UK government is mulling over a cap on green generation revenues comes at a time when our research finds that the investment pipeline for electricity renewables generation is the highest it has ever been. In our Renewables Pipeline Tracker (RPT) service we analyse the growing...

Energy storage and flexibility

“Each day looking for new ways to go on”: could a renewable capacity market assist hydrogen turbines?

The rise of renewables has seen the need for additional firming capacity in order to smooth renewable output and replace coal capacity in the evening peak. The ESB and federal Ministers are currently in discussions regarding the development (or not) of a capacity market for the NEM. Interestingly from the...