By Paul Homewood
h/t idau
The results of the T-1 Capacity Market Auction have just been announced.
The T-1 Capacity Market Auction for the 2024/25 delivery year concluded yesterday (20 February) after eight rounds clearing at £35.79/kW/year – 40% less than the £60/kW/year cleared in the 2023/24 auction.
This was confirmed this morning by Georgina Morris, head of capacity market policy – low carbon technologies for the Department of Energy Security and Net Zero (DESNZ), on the second day of Solar Media’s Energy Storage Summit 2024 (ESS24).
The provisional results show that roughly 9.5GW of de-rated capacity entered this year’s auction with less than 300MW exiting in the first seven rounds.
Jake Thompson, data scientist at energy data analyst’s Montel EnAppSys pointed out that the c.819MW Sutton Bridge and c.850MW Severn power stations (the two largest units in the auction) both exiting, removing their collective c.1.5GW of capacity from the auction and causing it to clear. This meant that the 7.6GW of capacity was awarded across a total of 277 capacity market units (CMUs)
“T-1 auction for the 2024/25 delivery year, we procured 7.6GW of capacity and they cleared in round eight at £35.7p,” Morris confirmed at ESS24 during the UK Battery Energy Storage System (BESS) panel this morning.
According to the National Grid ESO’s preliminary results, the majority of capacity was awarded to gas as a primary fuel type 2,943.79MW (38.53%), closely followed by nuclear 2767.26MW (36.22%) Demand-Side Response (DSR) was then awarded the third largest volume of capacity at 9.29%.
The T-1 is just a top up for capacity needed next winter.
Most of the capacity bought has already been auctioned at T-4, ie four years beforehand.
Of the 7.6 GW procured at T-1, 5.6 GW is firm capacity, gas and nuclear. This can be added to 26.4 GW and 2.0 GW of gas and nuclear at T-4.
Nobody in official circles seems to question where they will get this 30 GW from when gas power stations are shutdown in 2030 (Labour party policy).
As it is, two existing CCGTs, Sutton Bridge and Severn, pulled out of the auction at Round 8. Both plants are mothballed, so clearly the capacity payment was not enough to make it worthwhile bringing them back to service.
via NOT A LOT OF PEOPLE KNOW THAT
February 22, 2024 at 01:12PM
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