February 23, 2024

T-1 capacity auction clears at £35.79/kW

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Following the conclusion of the T-1 Capacity Auction (delivery 2024/25) on the 20th February, 7.6GW of capacity has been procured across 277 Capacity Market Units (CMUs) at a clearing price of £35.79/kW.

A month prior to the auction, the target capacity had been increased by 0.3GW to 7.7GW making it a record high. Despite this, over 9GW of capacity pre-qualified, due to returning CCGT & nuclear extensions, causing some in the market to predict a low clearing price, down from the highs of the previous two auctions (£75/kW and £60/kW).

However, the 2 Calon CCGTs, Sutton Bridge and Severn (779 MW each), both exited the auction, leaving the total gas CMU capacity at a similar level to that of the T-1 23/24 results, allowing the T-1 to clear at £35.79/kW. The loss of these two large units from the auction may see winter CSS levels supported as the market prices in a drop in expected firm capacity.

T-1 capacity auction clears at £35.79/kW