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Round and Round: CRM T-1 2019/ 2020 results

James Goldsmith Senior Consultant (Ireland)

The last week of 2018 saw the release of the T-1 Capacity Remuneration Mechanism (CRM) Auction results. These provide an interesting lead into the new year as we begin to prepare for the first T-4 CRM Auction, due to be held on the last week of March this year. The T-1 auction cleared at €40,645.66/MW, or £36,890/MW, with 100 capacity units submitting valid offers. This represents a reduction in clearing price of €1,155/MW from last year’s auction, which cleared at €41,800/MW. The majority of successful participants were existing assets, due to the lack of build time required for new assets to be operational by October 2019. There was however 132.375MW of new capacity added, most of which was Demand Side Units (DSUs) accounting for 129.475MW, with a single 2.7MW gas turbine also successful making up the rest.   Tightened our belts A big challenge for the System Operators (SO) during the CRM auction is to procure enough capacity to satisfy the locational constraints in Dublin and Northern Ireland, as part of the SEM-wide auction. These challenges were overcome, but as a result, certain participants were awarded contracts above the €40,645.66/MW clearing price: AES Kilroot (2 Units) - £47,200/MW and £46,708/MW (Northern Ireland) ESB Poolbeg (2 Units) - €50,720/MW (Dublin) The interesting aspect of this is that the list of above-clearing-price plant is different to last year. Then, it was made up of the units from North Wall and Huntstown, which both accepted the clearing price, ...

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