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SEM Chart of the Week

2019

Coming in hot: Final T-4 CRM results published

Tom Andrews Senior Analyst

On 7 May, the System Operators released the final results of the 2022-23 T-4 capacity auction, setting out the winners of agreements. While previous T-1 auctions are not comparable, the System Operators were satisfied that prices between the auction had been stable. The clearing price was €46,150/MW, for a total cost of €342mn. As we noted a few weeks ago in our Chart of the Week There is a Light That Never Goes Out, this is an important auction in signalling what capacity will seek to connect to the networks over a period of significant close-down of thermal assets: 1.6GW is expected to leave the system within five years. Electrify me up The qualified units totalled 10.9GW of de-rated capacity (all figures in this piece are in de-rated capacity), including 7.9GW of existing capacity and 3GW of proposed new-build. As might be expected, the bulk of existing qualified capacity is gas-fired – almost two-thirds. Of the new-build capacity qualified, 80% would be gas-fired, the remainder being made up of demand-side units, storage and wind. The capacity requirement for the auction was 7.5GW, with a 1.8GW minimum in the Northern Ireland locational constraint zone and 5.5GW in the Greater Dublin zone. We posed a question the last time we looked at this area: would the successful new gas capacity be a few large units, as the UK government hoped to deliver from its capacity market, or would it be a large number of small units, as was actually delivered? A secondary ...

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