T-4

  • Low carbon generation

    Here we go again: Capacity Market auctions, what can we expect?

    After recently issuing our latest Capacity Market Forecast, we wanted to highlight some of the key trends to look out for regarding the upcoming Capacity Market (CM) auctions being held in February 2022. This round of CM auctions begins with the T-1 for Delivery Year 2022-23 on 15 February followed...

  • Energy storage and flexibility

    Batteries, the Capacity Market and the challenge of Extended Performance – Part 2

    In a previous blog published on Monday 25 October, we discussed the issue of Extended Performance Tests within the GB Capacity Market (CM). In summary, due to degradation overtime it is currently not possible for batteries to be paid for their full capacity in the CM without risking significant fines....

  • Energy storage and flexibility

    The next episode: Qualification for T-4 Capacity auction

    The final qualification results for the upcoming 2023/24 T-4 Capacity Auction were published on the 3 April. In this week’s blog, we consider what these qualification results tell us. Click here to view full article

  • Low carbon generation

    Editor’s Pick | The green shoots of the Capacity Market auctions

    A pivotal year for the Capacity Market (CM) draws to a close, with the first long-term auctions for capacity since 2018. But for once the CM is the least interesting thing happening in the market, and the scheme itself seems out of step with the net zero future. In this Energy...

  • Low carbon generation

    Coming in hot: Final T-4 CRM results published

    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...

  • Low carbon generation

    One step beyond: First T-4 auction results

    The CRM T-4 Capacity auction is one of the new procurement processes being rolled out in SEM that will determine the future make up of the generation portfolio. The other auctions that will have an impact over the coming year will be the DS3 capped procurement and the Renewable Electricity...

  • Low carbon generation

    Are you gonna go my way? | SEMC consults on changes to T-4 capacity auction

    On 14 May the SEM Committee (SEMC) published a consultation on the Capacity Renumeration Mechanism (CRM) focusing on interim arrangements, updating auction design and specific parameters for the first T-4 auction for capacity year 2022-23. It is an important document for potential bidders into the March 2019 auction as, if...

  • Energy storage and flexibility

    A pragmatic review of battery business cases

    As we await the full results of the latest T-4 Capacity Market, which has delivered the lowest clearing price to date for this type of auction, we have been reflecting on the possible business cases for large-scale battery storage. I was speaking on this very topic at the Energy Storage...

  • Energy storage and flexibility

    What the T-1 auction does and doesn’t tell us about the upcoming T-4 auction

    The T-1 Capacity Market (CM) auction cleared on Thursday 1 February 2018 in round 14 at £6/kW. 5.78GW of capacity won an agreement for delivery year 2018-19 at an estimated cost for the consumer of £34mn. This is the second one-year ahead auction that has cleared lower than expectations; what does this...