Drivers behind multi-year low clearing prices and a market shifting in response to changing participation behaviours.
The latest round of Capacity Market auctions saw both the T‑1 and T‑4 auctions clear at multi‑year low prices, marking a significant shift from recent years in which clearing prices have consistently landed at much higher levels. With existing assets taking low prices, refurbishing plants adopting new bidding behaviours, and the generation mix continuing to evolve, this year’s results highlight a system in transition.
Cornwall Insight’s latest blog explores these trends in detail, examining the drivers behind the unusually low clearing prices, what they suggest about asset behaviour in both auctions, and what this could mean for future market dynamics.
Inside:
- Why T-1 and T-4 clearing prices hit multi-year lows.
- How refurbishing CCGTs shaped the T-4 auction.
- Trends in new build capacity.
- The increasing participation of RO-supported renewable assets.
- What these results could signal for future auctions.
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